‘Dear Seller’ Letters – A Negotiation Strategy

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Have you heard of a homebuyer letter? In some areas, buyers are including these letters with offers to purchase a home. These communications are a growing trend and could become common documents among real estate paperwork.

What is a homebuyer letter?

A home buyer letter is a personal note attached to an offer. Buyers often mention the features of the home and what they love about it, tell their story and why they are the right people to buy the home. These notes are designed to make a buyer’s offer more personal and appealing. The goal is to encourage the seller to choose the writer of the letter over another buyer.

A seller may receive multiple offers on their home and than have to choose which offer to negotiate or accept. To make their offer stand out, buyers are using these letters. They are written to sellers to plead the buyer’s case, offering reasons the seller should accept their offer over any others.

What is included in the letter?

Details vary, but many contain similar items. Buyers often mention what they love about the home, discuss how they plan to use it and why they are the right choice for the home. Some may reassure sellers that they don’t plan on making any significant changes, which could be helpful in situations where the seller has lived in a home for a long time or the property has been in a family for generations. Buyers may also choose to include personal information as another way to connect with the seller.

Does it work?

It can. Real estate agents have reported occasions when sellers did not choose the highest bid because of a letter included with a lower offer, but writing a letter is not guaranteed to work. For many sellers, the price is all that matters. Others find the letters inappropriate.

Is this a good strategy? Maybe.

Consult with your REALTOR® to determine what’s best for your situation.

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