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I'm a seller, who's gone through home selling process 3x and received my first ever buyer love letter during the selling process of home #3 recently. I was frankly baffled by it because I didn't see the benefit of it one way or another.
I look at home selling purely from business point of view, or to be blunt: how much money I can make off the transaction and which offer is the most likely to go through smoothly. If you make a strong offer with little to no contingencies, have your funding approved and ready, I would likely accept your offer, regardless of your family background, your skin color, or how many children you have. I couldn't care less how the future owners will treat the house since that's not going to be mine by then.
Yes. I want to see the money on the table and the highest reliable offer gets it. I don't care about letters. I imagine this is how most sellers view the transaction.
I wrote a letter to the seller of the overpriced house I wanted. I was trying to shake them off the overpriced fence. Didn't work, although ultimately it sold much closer to my price than theirs. They got lucky when all the people started freaking out and buying up all the houses in suburbs because they were afraid to live in the city.
While I don't think a letter is a big deal, I CAN see the issue with pocket listings. There was an article in the Trib recently about them in relation to the Fair Housing Act. I have never been a big fan of them but agents push them hard.
If you accept an offer because the family was white as opposed to a single black man... How do you not see that as a violation of fair housing?
The Fair Housing Act covers most housing. In very limited circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family houses sold or rented by the owner without the use of an agent, and housing operated by religious organizations and private clubs that limit occupancy to members.
The Fair Housing Act covers most housing. In very limited circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family houses sold or rented by the owner without the use of an agent, and housing operated by religious organizations and private clubs that limit occupancy to members.
I'm staying out of that one. Good luck. I'll continue to treat everyone equally and if folks want to write love letters, it's going to be an issue that makes it into litigation soon. Currently it's being discussed at the Realtor level and I feel once the lawyers get hold of it, will be in the courts soon enough.
I'm staying out of that one. Good luck. I'll continue to treat everyone equally and if folks want to write love letters, it's going to be an issue that makes it into litigation soon. Currently it's being discussed at the Realtor level and I feel once the lawyers get hold of it, will be in the courts soon enough.
I'm not saying it's right, I'm just pointing out that fair housing laws mostly apply to licensed individuals.
I would not see a buyer's letter doing any harm as long as it addresses the transaction. "My current living arrangements provide complete flexibility when it comes to a closing date." "The home inspection will be looking for large ticket items, not intended to be turned into a punch list for unrealistic perfection." I could go on and on with transactional comments, but I think the two examples provide the tone I am trying to portray. For me, as a seller, that means so much more.
I do admit, I think my letter that accompanied my offer was instrumental in winning the contract on my current home. Thinking back, I did state I was a single mom of a college student, but I mostly put in my letter tidbits about my qualifications, including my credit scores and flexibility. My loan officer knew the listing agent and made a call that her buyer was qualified and had a DU approval. (Something I do today when I know the listing agent). Out of 6 offers, I got the house.
I'm staying out of that one. Good luck. I'll continue to treat everyone equally and if folks want to write love letters, it's going to be an issue that makes it into litigation soon. Currently it's being discussed at the Realtor level and I feel once the lawyers get hold of it, will be in the courts soon enough.
These "love letters" have always made me a little nervous. They often include a photo of the family and IMO it opens the door for people who don't win a multiple offer situation to sue and accuse the seller of not selling to them because they are a member of a protected class.
Typically, I have a conversation with my clients up front about whether or not they want to see these letters. If they say "no" then I make that clear to folks up front.
Quote:
Originally Posted by Brandon Hoffman
I'm not saying it's right, I'm just pointing out that fair housing laws mostly apply to licensed individuals.
These exemptions only apply to rentals, it has to be a multi-unit dwelling that's owner occupied, and the property cannot be represented by an agent. There might be more conditions (I try to stay far away from rentals so I'm not quite up to snuff on the rules) but the point is that there are limited exceptions the fair housing laws as you said. Not sure why they exist. They do nonetheless.
There is a lot of discussion going on in our market about whether or not writing a Buyer Love Letter to a seller is a violation of Fair Housing.
The argument being that, if you pass yourselves off as Ward and June Cleaver, and you're competing with a single, un-wed mother, that it violates Fair Housing for the single mother.
In my opinion, there's some merits to this, as the letter is designed to elicit favoritism in your offer by selling yourselves as buyers. You're trying to sell your dream to a seller, and in a way it can possibly steer the seller's decision making process into an unfair territory.
I don't really see how this could ever be effectively enforced. I cannot stop a buyer from dropping off a note or knocking on the seller's door to introduce themselves.
Also, there are often multiple offers in transactions—a seller determines whether or not to allow an agent to reveal this information to other agents. Other agents do not have to reveal anything whatsoever about their client or clients.
I have told buyer-clients that a house is likely to be under multiples, and if they would like to write a letter about their situation, it might be a good idea. I've also told clients that a personal letter would likely not help their situation (eg. a flipper/LLC/estate is the seller). Usually the main focus of the letter is an appreciation of the decor/improvements, or that they are moving to town, or that they are first-time homebuyers. I don't think I've ever seen a letter that has pushed a family situation in a seller's face—and if I did, I would encourage the buyer's to rewrite the letter. I believe they do actually work, but I always tell buyers to back up their letter with a strong offer or clean terms.
It's an interesting question. I had not thought of Fair Housing issues. We wrote a letter recently as a way to appeal to the seller in a difficult & competitive sellers market. Home was owned by an elderly individual that recently passed away after living in it for decades. With the influx of investors & flippers, we wanted the family to be reassured in knowing that the home would be lived in and cared for. And how much we appreciated the little details in the home that someone built over time with their own hands.
The letter was at the suggestion of our realtor, and we are under contract now. I guess it really depends on the situation. Someone who is looking for every last dollar in a transaction probably could care less about a letter. That's where it's good to have a realtor who knows their stuff.
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