Valentine’s Day is a time to express sincere love and appreciation. Few things stir as much passion as the sight of the home of your dreams. One that’s in your price range and newly listed!
If there’s an attractively priced home getting multiple bids, it’s understandable you might be tempted to pull out all the stops to sweeten your offer. One strategy has involved “love letters.” These heartfelt messages are sent from buyers to home sellers expressing a connection. The hope is that the seller will accept your offer above the others. While this tactic has been a popular approach in the past, buyers are now being urged to “tread carefully.” The risk of violating fair housing laws is real. Let’s explore why avoiding bias is important. We’ll also look into alternate ways to secure your happily ever after while keeping the transaction objective and lawful.
What is the Fair Housing Act and why is it important?
The Fair Housing Act is a federal law that went into effect in 1989. It’s designed to protect people from discrimination when renting or buying a home. It also protects those getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. This act prohibits discrimination based on race, color, national origin, religion, sex, disability, and familial status. It ensures everyone has access to the same opportunities when looking for housing without fear of being discriminated against. It helps create equal opportunity for all individuals regardless of their background. And it allows all to have an equal chance at finding a safe and affordable place to live.
How might a buyer’s “love letter” lead to a violation of fair housing laws?
According to Charlie Lee at the National Association of Realtors, “The use of a love letter often presents fair housing issues because they often contain personal information about the buyer, such as their race and culture or traditions as a way of appealing to the seller’s emotions.” Even if it is done without malicious intent, the inclusion of buyer love letters in a transaction carries the risk of violating fair housing laws. Especially if the seller makes their decision to accept or reject an offer based on any information regarding protected classes.
For example, if your letter mentions “looking forward to a Christmas dinner with the kids in this home’s lovely kitchen,” this statement reveals religious and familial information. According to the Fair Housing Act, this should not be used to accept or deny an offer.
Including photos and videos in your correspondence to sellers can add an additional layer of problems. These can reveal a buyer’s race, color, sex, disability, and other protected information. That information must not contribute to a seller’s decision on whose offer to accept. Even if it’s not done on purpose, introducing buyer love letters into the transaction can lead to violations. If the seller makes a decision based on information related to any of the protected classes there could be a problem.
Love letters have already been legally challenged
Oregon made homebuyer love letters illegal in July 2021. The law requires seller’s agents to reject any buyers’ letters to sellers that contain information beyond the standard offer. A federal judge subsequently overturned this law in May 2022 stating that, as written, it was unenforceable under the First Amendment and not adequately tailored to prevent discrimination. However, the National Association of REALTORS® legal team continues to warn about the inherent issues in these letters.
What are some alternatives to letters that will help increase your chances of a successful offer?
- Share your credit score along with your lender’s prequalification letter to help show how qualified you are.
- A non-refundable deposit can demonstrate you’re committed to the purchase.
- Work with an experienced real estate agent. A quality real estate agent will research the market, then help you strategize the type of offer that would be most enticing for a particular seller.
It’s completely understandable that you might be willing to do whatever it takes when a certain home makes your heart skip a beat. But the sweetest real estate experience is one where you leave the stress of negotiating an offer to a local expert. So go ahead and hand over the property pains to a professional, and—with a little patience—you’ll soon end up head over heels with your perfect home, giving your real estate romance a happy ending.
Conclusion
In conclusion, while the allure of securing your dream home may tempt you to use personal appeals like “love letters,” it’s essential to be mindful of fair housing laws. These laws are in place to prevent discrimination and ensure equal opportunity for all buyers, regardless of their background.
Rather than risking potential legal issues by including personal information in your offer, consider alternative strategies that highlight your financial qualifications and commitment to the purchase. Working with an experienced real estate agent can also help craft a compelling, lawful offer. By approaching the home buying process with both passion and prudence, you can achieve a successful and stress-free transaction, leading to a truly happy ending in your quest for the perfect home.
The above real estate information, “LOVE LETTERS” SHOULD BUYERS SEND THEM TO HOME SELLERS?, was provided by Vicki Moore, a realtor specializing in home sales from Pacifica to Pescadero, including greater San Mateo County.
Vicki can be reached via email at vicki@callvicki.com or by phone at 650-888-9268. Vicki has helped people move in and out of many San Mateo County homes for the last 25 years.
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