Real estate 'love letters' sweet, but legally risky
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Illustration: Maura Losch/Axios
A few months ago, someone wrote me a love letter.
Reality check: It was from a stranger and came with a money offer, but I was still flattered.
The big picture: Real estate agents are warning clients away from real estate "love letters" detailing why they're the perfect buyer.
Flashback: The practice has been around for decades but the competitive, post-pandemic market of low inventory and multiple bidders made the practice more common.
The intrigue: So common that Etsy started selling stationery templates for the perfect love letter, the New York Times reported.
Yes, but: The National Association of Realtors warns agents that notes full of sweet family anecdotes and personal details could make sellers open to accusations of discrimination under the Fair Housing Act.
- A seller could be accused of refusing — or accepting — an offer based on the buyer's race, religion, or other background information.
Imagine a letter portraying an idyllic scene of celebrating Christmas with the kids. That reveals religion and familial status.
Plus, they don't always paint a full financial picture of the buyer.
Zoom in: I've had multiple friends write letters to snag a house, but was surprised when my agent told me in October that a buyer had written a letter to buy my Ukrainian Village condo.
- The offer was for asking, which seemed good enough for me, and my agent casually mentioned the buyer's interest was very high based on "the letter."
- Naturally, I wanted to read said letter, but my agent didn't show me because of the reasons above.
My thought bubble: Of course, a home is attached to memories and emotions. I bought my condo by myself before getting married (and, yes, the mortgage included "single woman" next to my name). It was a source of great pride.
In the end, it's a financial transaction and factors like price, expediency of closing and ease of sale are what both sides should really pay attention to.