Homebuyer Love Letters Are Actually Sticky and Manipulative
In an overheated real estate market, buyers increasingly rely on so-called “love letters” to get sellers to influence their offerings. Problem? These letters are often highly personal and contain details that could lead to discrimination based on race, religion, or class. This is why the National Association of Realtors recommends avoiding them altogether, whether you are a buyer or a seller.
What is a love letter?
Love letters, also known as buyer’s letters, are commonly used by buyers when bidding on real estate. The letters introduce the buyer to the seller in the hope of establishing some kind of connection that will increase their bid. Typically, a love letter lays out all the reasons a home is perfect for a buyer and mentions personal details that can form a bond with the seller, such as having children or pets or a love of hobbies such as gardening or cooking. … In some cases, these emails also include photographs or videos of buyers.
While most sellers are looking for the highest bidder for a home, there is some evidence that these emotional appeals are working. According to the Wall Street Journal , a 2018 study by brokerage company Redfin Corp. found that a personal letter could increase the likelihood of an offer being accepted by 52%.
Okay, what’s wrong with the introduction?
Even a seller with the best intentions to be honest can be influenced by a buyer who shares a common interest or lifestyle. This increases the risk of discrimination against buyers on the basis of race, class, religion, sexual orientation, disability and national origin, which could violate fair housing laws. For example, consider this love letter template, which includes the following sample text:
Inside this house, we love the layout. He’s so bright and inviting! Our cats Bubba and Mister Cat will love to bathe in natural light. We can watch Christmas morning by this gorgeous fireplace (swoon!), Cook in a beautifully decorated kitchen (Jane loves to cook) and each bedroom is ready to be a cozy resting place for every member of our family (present and future).
The mention of Christmas means that this letter can be read as “hello Christian brothers ”, which would be discriminatory if it affected the potential owner. Likewise, a home filled with a growing family might appeal to a salesperson, but that might not be fair to a legitimate claim of a couple without children, or someone who can’t have children.
This is why the National Association of Realtors has issued a guide to its members advising against composing, reading, or delivering love letters written by their clients. Other associations of realtors in California, Ohio, and Arizona have similar guidelines. Oregon recently also banned love letters .
Don’t read love letters if you’re a salesperson
In fact, in a hot home market, it’s very difficult for buyers to avoid writing love letters if that’s what everyone else in the bidders is doing. On the other hand, if you are a salesperson, you have full authority to ignore these love letters for ethical reasons (the threat of an actual legal action is unlikely as the National Association of Realtors states that there were no love lawsuits. Letter). Instead, focus on legal, non-discriminatory criteria when deciding to sell.