It’s Time to Breakup With the Buyer Love Letter

by Rogers Healy
Send a love letter to your significant other, not the seller of a home you’re determined to purchase.

In this increasingly competitive market, buyers are ready to do nearly anything to secure a property. “Love letters” to sellers are becoming more common than they have been in years prior due to the competitive climate that we find ourselves in coupled with the record low inventory.

Fearful of not having the highest or best offer, many buyers are willing to go that extra step and send a letter to the seller of the home in which they are desperate to win their bidding war. Their primary goal is to persuade the buyer to accept their offer over all others, as the market has truly evolved into the Wild West.

Hopeful buyers are entering bidding wars on homes that historically would sit on the market for 60-90 days. These homes are now receiving offers the day they hit the market, or even before in some cases.

Sending a “love letter” to a seller may seem like a good idea in theory, but there are many issues that could arise from doing so. Usually, these letters include personal details and photographs alluding to information that could easily be in violation of fair housing laws.

If information is protected by fair housing laws, and the seller accepts an offer based on the information that is disclosed in these letters or photographs, fair housing violations ensue.

Familial status, religion, race, sex, and disability are all protected under fair housing laws and can be easily violated by sending “love letters” or photos to a seller even if the intention isn’t to disclose this information. As benign as these letters might seem on a surface level, they can ultimately result in larger issues.

If it is proven that the seller liked and chose a buyer due to a commonality of race, religion, or shared disability, after receiving a “love letter,” the seller could be challenged for making the decision to accept the offer from that particular buyer.

While proving discrimination is difficult, the seller could face financial penalties if the buyer is successful in filing a fair housing lawsuit or a complaint. Legal action is rare, but isn’t impossible. It is likely that this could be more of a common issue as the market continues to grow even more competitive and buyers are willing to do whatever it takes to have their offer accepted.

Buyers cannot get into trouble for sending the letters, but there is a lot of room for error. They could also be setting themselves up for a larger disappointment if they send the letter and are ultimately still rejected after engaging in a fierce bidding war.

In order to avoid potential issues that could arise leading up to a transaction, it is better to dissuade your buyers from sending “love letters” or photos that could disclose information that violates fair housing laws. Of course, buyers are determined to win their bidding wars, but it’s better to err on the side of caution and just not send these letters in the first place.