What is a love letter? And how could it be a bad thing??

Everyone would enjoy a sweet love letter, right?  Well, as it pertains to real estate it could unintentionally cause some problems. In the past, buyers liked to include an emotional letter with their offer to try to personally connect with the seller. Maybe also include a picture of themselves or their family. Buyers attempted to pull on heart strings while showing their attachment to the home. All in hopes of increasing the odds of their offer getting accepted.

These letters could provide personal information about the potential buyers that the seller would not otherwise know. For example, what they look like, whether they have kids, where they work or worship.  The Fair Housing Act prohibits discrimination based on 7 protected classes (many states and local jurisdictions have additional protected classes):

    • Race
    • Skin Color
    • Familial Status
    • Disability
    • Religion
    • Nationality
    • Sex

A friendly letter included with an offer may provide any or all of these details to the seller.  Sellers should weigh offers based on financial strength, contingencies, and timing, without regard to personal traits of potential buyers. The Maryland Real Estate Commission has updated agreements to include warnings about these letters. They suggest that they be removed from any offers to prevent even the appearance of bias in comparing offers. Many states throughout the country are doing the same.

Buyers write these letters with good intent because they really want to convey their love of the home.  However, to ensure all parties are treated fairly, err on the side of caution and limit the sharing of personal information.  Please watch the video above, provided by the National Association of Realtors for further explanation.