The practice of including “love letters” or personal letters with home offers has been a common practice in real estate transactions. These letters are intended to convey the emotional connection and personal story of the buyer to the seller, potentially appealing to their sentiments and influencing their decision.
However, it’s important to note that the acceptability and effectiveness of love letters can vary based on local regulations, cultural norms, and individual seller preferences. Additionally, there are legal considerations surrounding fair housing laws, which aim to prevent discrimination in the housing market.
In some regions, love letters are discouraged or even prohibited to avoid potential bias or discrimination in the selection process. These laws are in place to ensure fair treatment and equal opportunities for all potential buyers. If love letters are permitted in your area, here are some factors to consider:
Pros:
1. Emotional Appeal: A heartfelt letter can establish a personal connection and create empathy between the buyer and seller. It may help the seller relate to the buyer’s story and motivate them to choose an offer.
2. Differentiation: In competitive markets, where multiple offers are common, a well-crafted love letter can make your offer stand out from the rest. It allows you to differentiate yourself by showing your genuine interest in the property and willingness to create a home.
Cons:
1. Fair Housing Concerns: Love letters have the potential to inadvertently disclose personal information that could trigger bias or discrimination. Sellers may unintentionally make decisions based on protected characteristics such as race, religion, or family status, which is a violation of fair housing laws.
2. Unintended Pressure: Sellers might feel pressured or uncomfortable when evaluating offers accompanied by emotional letters. They may prefer to base their decision solely on objective factors such as price, terms, and reliability of the buyer.
Given the complexity of this topic and the varying legal and cultural considerations, it is advisable to consult with a local real estate professional or attorney who can provide guidance specific to your location. They will be familiar with the local regulations and can help you navigate the decision of whether or not to include a love letter with your offer.
—End of article written by ChatGPT
If I had written on this topic, I would have provided more guidance on avoiding fair housing violations, which is what triggered Oregon’s 2022 law banning love letters. That law was found unconstitutional on May 6th. I would have advised to exclude any photograph of the buyers. Let’s say the picture was of a white couple, and their offer was accepted over an offer from at least one gay or mixed race couple. That losing buyer might well win a lawsuit claiming that the seller and listing agent committed a fair housing violation, if they were to discover the winning love letter.
Fair housing laws, both at the federal level and the stricter Colorado state level, include so many “protected classes,” that a seller is not allowed to consider even the familial status (married, single, with or without children), disability, or sexual orientation, including transgender status, along with the more familiar race, creed, national origin, etc. As you can imagine, it would be hard to compose a “love letter” that didn’t reveal at least one of those descriptors.
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