Guess what buyers, sellers do not want your love letters and here’s why.
Buyers today are having a tough time in this steep seller’s market, and they are trying anything and everything to win in a multiple offer situation. They think that by writing a letter and trying to connect with the seller on an emotional level, the seller will pick their offer.
That’s not how it works and in fact, buyers are actually hurting their chances by submitting a letter.
Fair Housing Act
The Fair Housing Act makes it illegal for a seller to discriminate against a buyer based on seven protected classes. These classes are:
- Race
- Color
- National Origin
- Religion
- Sex
- Familial Status
- Disability
Washington State adds three more to this list: marital status, sexual orientation, and veteran/military status. Seattle and Tacoma have additional protected classes including age, gender identity, Section 8, and political ideology.
When buyers write a letter, buyers will naturally write about who is going to be living in the house, how the buyers will live in the house, and why the buyers like the house but in doing so, buyers are also highlighting their membership in fair housing protected classes.
Why is a love letter a problem for the seller?
A love letter from the buyer can create a situation where the seller could unknowingly violate fair housing laws by choosing a buyer (or NOT choosing that buyer) based on the characteristics shared in the love letter.
Can you spot potential problems for a seller in the letter above? (The buyer has shared with the seller their marital status, familial status, and religion.)
Keep in mind, fair housing laws are about ensuring that anyone who is qualified to purchase a home can and won’t be discriminated against. But a love letter can put the seller in a potentially very bad legal position if the seller does not choose the best contract.
I tell my sellers to choose the best paper, not the people, meaning choose the offer that has the best price and terms, not the people who are making the offer.
When my sellers receive a love letter with an offer, I am required to present it unless the seller has directed me otherwise. If the seller wants to read the love letter, then I would advise them they should seek legal counsel. I then have to document the seller’s decision-making process and how they decided upon the winning offer.
Once sellers understand what’s at stake, most sellers will choose NOT to accept nor read love letters. This is how a love letter can really backfire for a buyer.
What Should Buyers Do?
Although a buyer cannot violate the Fair Housing Act by writing a letter and submitting it to the seller, this letter can do more damage than good for a buyer.
Buyers should focus on writing and submitting a compelling offer based on price and terms. Any seller would welcome a well-crafted offer over a personal letter!