Should I Be Writing A Seller “Love Letter” For A Home I Want To Buy?
I’m sure you’ve heard about the latest trend of buyers writing their Sellers personalized letters (“love letters”) that are submitted with their offers to entice them to accept their offer to purchase their home. I love the idea, but a recent article in Illinois Realtor magazine got me thinking about the legal side of those letters.
The National Association of Realtors has cautioned against the use of these “love letters” because of the risks that they pose for disclosing personal information of buyers to sellers, such as race, religion, and family status. These items could be used, knowingly, or unknowingly, to discriminate against buyers during the offer process. This idea is the same idea behind the recommendation your Realtor might give you about taking down personal items, such as photos, when you are listing and showing your home.
A better focus beyond these “love letters” to a Seller would be making the terms of your offer as strong as possible. Get a strong pre-approval, showing that the lender has not only looked at your credit, but also at your income and some of the other factors needed to qualify to purchase a home.
Oregon recently passed a law, effective in 2022, banning the use of these letters in a real estate transactions. The National Association of Realtors issued a statement saying “all parties in a real estate transaction should consider only legitimate, non-discriminatory criteria when making business decisions.”
Buying and selling real estate is an emotional process. These love letters can make it more emotional. I’m often counseling clients to look at their transaction as a business transaction, through “big picture” glasses. Sometimes taking the emotion of out it can help people make better decisions.
If you are a real estate agent, and you have a client who insists on writing on of these letters, think about removing yourself from any involvement with the letter and encourage them to discuss the content of the letter with their attorney. Also have them discuss with their broker whether they have any policies regarding these types of letters.
