Writing Buyer Love Letters to a Home Seller Does Not Work
Ah, real estate – the business of home buying and selling, where several parameters come together. From the first step of deciding on selling your home to the later stages of escrow, the process is very intricate.
In our experience as cash home buyers, we have encountered several clients who believe in the emotional aspect of this process. But that’s the deal with buyers writing love letters to home sellers: it might not work, or it just might. Trust me, it does not make a significant impact as the sellers are in it for the money, and rightly so.
I’ll explain why these so-called love letters are insignificant and ineffective in today’s housing market.
Dissecting The Emotional Appeal
Buyers assume that penning down an emotional letter might tip the scales in their favor. However, they overlook the fact that most sellers will prioritize financial considerations over emotions.
One of our clients who was selling their home in Germantown, Philly, entirely dismissed the buyer’s love letter as they felt the buyer was crossing boundaries by involving emotions in a simple business transaction. As a result, the seller moved on to other offers.
Sellers are looking for a competitive and financially sound offer. A heart-warming letter is unlikely to make up for a lower bid. We strongly recommend that buyers be careful when using this approach, as it may appear to be a red flag to certain kinds of sellers.
Legal and Ethical Issues
Buyer love letters could also lead to unintentional legal issues. According to Fair Housing Laws, “home sellers cannot discriminate among buyers based on race, sex, ethnicity, religion, disability, or familial status. When buyers include personal details in their letters, they unknowingly put the sellers at risk of these laws.”
For instance, if a seller chooses to sell their home based on a personal story in a love letter and rejects a fair offer, they could face allegations of discrimination. Real estate agents often advise their clients not to indulge in such letters to protect them against potential legal issues.
I am aware of a familiar case where the seller decided to offer the home to a prospective buyer based on their love letter. But everything worked out fine for them as the seller had strong emotional ties to the property. However, it is best to be cautious.
Data-Driven Market
The current real estate market is heavily data-driven. Sellers and their agents rely on comps, analytics, and financial details to evaluate offers. Emotional elements rarely factor into these categories.
Since bidding wars are the new normal in the home-buying process, sellers are more likely to focus on dependable metrics like pre-approval documents and contingencies, elements that define the buyer’s financial strength and commitment to the transaction.
My simple take on this situation is that “In such a data-driven market, buyers’ love letters are irrelevant.”
Overstepping Boundaries
As I said before, not all sellers may appreciate this step on the buyer’s part. A potential downside to a buyer’s love letter is overstepping boundaries. Sellers may view these letters as manipulative.
What a buyer sees as heartfelt, the seller may find inappropriate. Trust me, you do not want to go down this rabbit hole. Additionally, some sellers prefer to maintain a professional relationship with the buyer during the transaction.
In such a situation where the seller is distant and professional, a love letter may undermine the credibility of the buyer and damage their chances of securing the property.
What Are Some Alternatives For Buyers To Stand Out?
Instead of a love letter, there are other ways potential buyers could stand out in a crowd of interested parties. These aspects might work:
- Get pre-approved for a mortgage
- Offer a competitive price
- Reduce contingencies
- Increase the earnest money deposit
- Work with an experienced agent
What Is The Role of The Real Estate Agent?
Jon describes this as “Real estate agents act as the intermediaries between the buyer and the seller, often shaping the narrative of the transaction.” A skilled agent could easily convey a buyer’s commitment without crossing any boundaries.
By building a rapport with the seller’s agent and presenting the offer compellingly, an agent can achieve what a love letter fails to do. We have seen this time and again where an experienced and polished agent can make or break the transaction.
Does The Emotional Component Still Matter?
While a love letter from homebuyers may be out of style, emotions still play a role in real estate transactions. Generally, sellers want to feel that their home will be in good hands.
At one of our colleagues’ open houses, a prospective buyer showed interest by asking thoughtful questions and engaging in conversations about the house. They were well-prepared with the professional packet, including the pre-approval for mortgage, proof of funds, and minimal contingencies. And immediately, the seller was attracted to their offer.
All it takes for a real estate transaction is the seriousness and reliability of the buyer. Of course, there are other serious aspects – a love letter is not one of them anymore. Writing buyer love letters will not increase your odds of someone selling a house to you. It’s the cold, hard truth in real estate.
