Agents reinvent love letters as competition heats up

In today’s red-hot housing market, buyers are doing everything they can to compete. Waiving contingencies, bidding well over asking and in some cases even making an offer on a property sight unseen are all becoming de rigueur.

But what about the humble love letter? Surely, telling a seller why you love their home and want to make it your own can only boost your chances.

Not so fast, says the National Association of Realtors. Some jurisdictions already have outlawed these missives, and NAR advises against them even in places where they are still legal. According to the organization, the notes can lead sellers to run afoul of the Fair Housing Act and actually can endanger a deal.

That doesn’t mean there aren’t alternatives, however. Two Realtors in Chicago shared at a recent National Association of Minority Mortgage Bankers of America event that they’re experimenting with a new format that focuses more on the professional side of the deal than the buyer’s characteristics. They said this tactic could be the start of a new chapter for love letters in real estate.

Why real estate love letters are problematic

Traditional buyer love letters can seem like a nice personal touch to help your offer stand out, but real estate professionals warn that they can inadvertently lead a seller to consider information they’re not supposed to take into account as they weigh competing bids.

“If you send something like, ‘When we viewed the home, I just imagined my kids playing in the backyard,’ ” said Eve Benton, designated managing broker for Exit Strategy Realty in Chicago, “you run the risk of them saying that you selected that buyer based off of familial status, which is a protected class.”

The Fair Housing Act prohibits discriminating against prospective homebuyers on the basis of race, color, religion, sex (including sexual orientation and gender identity), handicap, familial status and national origin.

Personalized love letters tend to include information about the buyer that falls into at least one of the protected categories, which can leave not only a seller’s agent but the sellers themselves on the hook for potential violations.