They say that handwritten letters will never go out of style and, when it comes to homebuying, that may just be true.
The buyer’s “love letter” can be a powerful tool for standing out from a sea of fellow applicants, but there are a few caveats in leveraging it correctly. So, if you’re in the market for a new home, you’ll certainly want to study up on the power of the written word.
What is the purpose of writing a letter to a home seller?
As the housing market remains red hot, locales across the country are experiencing steadily rising prices and unwavering demand. First-time buyers are in an especially difficult position, as desirable properties are often whisked off the market in record time. This has led to massive bidding wars, many homes selling for far more than the asking price, some buyers waiving home inspections and more.
So, how do you stand out in such a highly-competitive landscape? As it turns out, simply writing a letter to the home seller could help your offer almost instantly stand out.
A letter from the buyer provides an opportunity to really pitch yourself, create a more personal connection and add any necessary context to your offer. This is important because, as some homebuyers prepare for and navigate the homebuying process, they may begin to feel represented by a single figure, like their credit score, or like a simple snapshot of their overall financial picture. Writing a letter gives you the opportunity to make your case outside of the typical required financial documents. It reminds the seller that you’re not a name on an application, but a unique, three-dimensional human being.
It’s important to note that writing a letter to a home seller is only a strategy and not a requirement. As such, before picking up a pen, you’ll want to thoroughly understand the pros and cons of the process.
Benefits of writing a letter to a home seller
As mentioned, a buyer’s letter adds color and context to your application. Perhaps during the open house, you noticed that you share the alma matter, passion for a unique hobby or even an appreciation for historic wood paneling. Highlighting these connections all help build a shared understanding and make an emotional appeal to the seller.
What’s more, some buyers are actually seeking an emotional sale rather than a purely logical one. For example, empty nesters in a close-knit part of town may be more willing to sell to a local teacher than a real estate developer, even if they miss out on a larger payday or an all-cash deal. After all, for many people, homebuying and selling are inherently emotional. Knowing that another classic car fanatic will enjoy the sizable garage could be just what seals the deal.
A letter also allows you to disclose or explain any additional information that wasn’t necessarily reflected in your offer. For example, perhaps you’re unable to pay top dollar but are willing to waive some contingencies or close as quickly as possible.
Pitfalls when writing a letter to a home seller
Of course, in today’s market, no strategy will be surefire. It’s important to remember that you can’t necessarily control the reaction to your letter, and there’s always a chance it may be perceived differently than intended. For example, discussing renovations could come from a genuine place of excitement, but immediately offend the seller. Or, mentioning how much your dog would enjoy the nearby park could fall flat to a cat person. Written communication can often be misunderstood, so simply work to put your best foot forward and try to remove yourself from the outcome.
Writing about certain identities may also be unethical or outright illegal, in some cases. You’ll want to steer clear of mentioning race, religion or familial status, as disclosing these identities could lead to fair housing concerns. The Fair Housing Act dictates certain protected characteristics, and outlaws making any housing decisions based upon them. For example, if you choose to mention Christmas morning in your letter, you may have inadvertently disclosed your religious affiliation. Then, the seller may be swayed in one way or another, either consciously or unconsciously, by this new information. While hobbies and interests are fine, be sure to remove any details that reveal personal identities before sending the letter.
Because of the potential challenges with the ethics of homebuyer “love letters”, some states don’t allow them. Check with your real estate agent and mortgage professional to see if they’re permitted in your area.
Steps for writing a letter to a home seller
If you’ve weighed the pros and cons, and determined that a buyer’s letter is worth it, it’s time to start writing. Here’s how to get started:
- Create an outline around what you’d like to share. Include any opportunities for connection, standout qualities or issues you’d like to discuss.
- Create a short draft. Home sellers are short on time, particularly if you’re in a competitive market, so ensure that the message is simple, direct and easy to digest. Trim anything that’s not absolutely necessary.
- Ensure the voice and tone are appropriate. If you’ve been house hunting for months and are continually outbid, it’s easy to start sounding dejected. Avoid complaining or guilt-tripping and, instead, promote positivity.
- End on a strong note. Summarize your points, thank the seller for their time and provide your agent’s contact information, should they want to follow up.
- Proofread, proofread, proofread! Triple-check your spelling and grammar, then have a friend or family member read it over, too. This letter is too high-stakes to let a typo ding you.
- Contact your real estate agent to discuss delivering the letter.
The ins and outs of writing a letter to a home seller
Like much of the homebuying process, there is no right or wrong answer when it comes to writing a buyer’s letter. The process will be a fit for some home seekers, while others won’t be so keen. The important piece is making the right choice for you.
When in doubt, you can always ask your real estate agent for their thoughts. Some agents are big proponents, while others outright disallow these letters. Either way, seeking out the opinion of an expert can help clarify which route you should take. Happy house hunting!
Published on May 9, 2022
