There are more effective strategies for capturing sellers’ attention than letters.
After seeing the home of your dreams sold to another buyer, you may be looking for ways to stand out the next time a desirable home comes on the market. Some of you may be thinking of writing a so-called “love letter” to the seller or even making a video to send to the seller in an attempt to sway them into picking your offer — unaware that this could put the seller in a sticky situation, or even have them run afoul of the law.
Buyers have written love letters to sellers in hopes of making an offer stand out against the competition. But they’ve always run the risk of going against fair housing laws if the seller even reads the letter, much less considers many of the details about your life you might want to share. Zillow discourages “love letters” written by buyers, or received by sellers, and agents.
Agents who are aware of the risks such letters pose to the seller and themselves will likely tell you that they cannot deliver one on your behalf. They’ll also likely tell you they can’t help you draft one or even read the one you’ve written. That’s how seriously they take it.
Beyond the legal risks, love letters to sellers don’t seem to get results: They ranked last in a survey of 376 Zillow Premier Agent partners who were surveyed in spring 2021 about the effectiveness of strategies they used or encountered in their last three to five transactions as buyers’ and listing agents.
Still, mystique around the letters persists. You may have that one friend who insists that their love letter was the deciding reason they got their house and that you should write one too. If that’s the case, you might consider the following:
Is it illegal to write a love letter to a seller?
Your letter could turn the seller you’re trying to convince to sell to you into a lawbreaker. Here’s why.
The federal Fair Housing Act, adopted in 1968, makes it illegal for home sellers and real estate agents to discriminate against buyers on the basis of race, color, religion, sex, national origin, disability, or family status — namely the presence of minor children. Many states and localities have built on that foundation, making it illegal to discriminate on the basis of gender identity, sexual orientation, age, and source of income, among others. Collectively, those laws cover a broad swath of humanity. In addition, some states are considering specific laws that restrict a seller’s agent from accepting a love letter altogether.
A letter that reveals any of those details covered by federal and local anti-discrimination laws around housing could put the seller at risk. And when you remove those things, you’re limited on what you can write about.
What kinds of information are considered risky to share?
Think about the picture you might want to paint for a prospective seller to sway them, and how those details and any accompanying photos you might include could bias a seller, even unconsciously — or maybe especially so.
By sharing those details with a seller, you are basically appealing to them on grounds that they are not legally allowed to consider.
Those areas include:
- Information about your family
- References to your children
- Details about your job
- Descriptions of how your family plans to enjoy the home
- References to a place of worship
- Anything else that reveals a characteristic protected under the anti-discrimination laws where the property is located
Consider other tactics to capture a seller’s attention
While not as heart-stirring as a love letter to the seller that expresses your hopes and dreams, there are other tactics that have worked for buyers who want their offers to stand out, even in supercharged markets.
Zillow’s agent survey identified effective strategies for crafting a winning offer. Top among them:
Demonstrate financial strength
When you’re up against all-cash offers — as many buyers are — look for other ways to show you’re well-qualified for the purchase, prepared to compete and serious about the property. Ways you can do that include:
- including an escalation clause
- submitting your offer before the review date
- making a higher down payment
- increasing the amount of earnest money when you make your offer
Not surprisingly, all-cash proved to be the most effective strategy in the recent transactions involving the agents surveyed. However, only 26% of agents who list properties for sellers cited all-cash as the most important for the seller’s decision. Buyers often talk about being unable to compete against cash, but clearly, you can.
Most buyer agents (82%) said they submitted all-cash offers at least sometimes on behalf of their clients. But other strategies were popular as well.
About 87% of buyers’ agents surveyed said they always or sometimes helped their clients’ offers stand out by offering higher down payments or more earnest money. And 71% always or sometimes submitted offers before the review date. These strategies show intent and interest, and can reinforce the notion that you’re well-qualified and committed.
Sweeten the offer
Some of the more unconventional strategies reported by agents in the survey speak to the power of empathy. Listen to what’s important to the seller and how you can address their needs while meeting yours.
Strategies that tapped empathy for the seller included:
- A lease-back arrangement. Since 63% of sellers also buy, a lease-back takes away some of the uncertainty they may feel about finding a home in such a competitive market. Giving them some flexibility and time to find a home could make your offer more attractive. An offer promising a fast close may be something the seller is not be ready for.
- Sending flowers to the seller. It could come off as a ploy, or it could be a way for your client to show their sincerity and for their offer to stay top of mind.
Use technology to focus your search
Tour homes remotely to get a feel for the market and identify homes you might be interested in. That way, you can move quickly, potentially getting out ahead of other buyers at open houses.
Focus on the offer
In this competitive market, you may run into situations where someone is eager to have you write a love letter to share with a seller. Hopefully, after reading this you’ll be able to steer clear of anything that might legally compromise a seller and put your energy into strategies that agents say work.