Should Tamaqua home buyers include a “love letter” with their offer to purchase?

More and more buyer agents are advising clients to write a love letter to accompany their offers to purchase a home.

 

In hot markets, the theory is that the seller choosing between multiple offers will be more inclined to accept an offer from someone who loves their home, even if that offer is not the highest.

 

In balanced markets, the hope is that a love letter will persuade the seller to accept a lower offer.

 

Does it work? In some cases, yes.

 

Sellers have been known to choose a buyer because that buyer promises to take good care of their garden or because they appreciate the special touches the owners have added to the house. Some choose a buyer because they identify with them as parents, dog lovers, golfers, fans of the same sports team, or even because share the same occupation.

 

The theory is “It can’t hurt, so why not try it?”

 

Well – because it could hurt.

 

A buyer who wrote a letter and whose offer was not accepted could claim a violation of the Fair Housing Act. This did happen in at least one case where the buyers had included photos of the family that clearly depicted their minority status. In this case, the buyers learned that the sellers had accepted an offer lower than theirs and they screamed discrimination.

 

As all agents know, there can be valid financial reasons for accepting a lower offer. They might include contingencies and concessions that effectively lowered the seller’s net proceeds. They might also include timing issues or a cash offer vs. one that was contingent on financing.

 

Sellers do have the right to accept the offer of their choosing – but can open themselves up to legal problems if it appears that they may have made that choice based on discrimination.

 

Because of this possibility, some attorneys are advising clients not to accept love letters from potential buyers.

 

Love letters can also hurt the buyer’s negotiating position.

Buyers are always cautioned not to show too much enthusiasm for a home in front of the seller or the seller’s agent.  

 

And what does a love letter do? It conveys a strong desire to own that home. The letter may get the original offer accepted, but if further negotiations are needed after an inspection, the sellers may refuse to play.

 

“You love and want my house. This is the price we agreed upon. I’m not bending.”

 

If you’re a buyer, should you write a love letter to the seller? If you’re selling, should you accept love letters?

Since each situation is different, these are questions to discuss with your agent and possibly with your attorney.

Selling your Tamaqua home – should you follow this latest Springtime trend?

According to Realty Times, the “in” thing this Spring is to cover one wall (or ceiling) with big, bold, floral print wallpaper.

 

The new wallpaper has little in common with the small, tight, floral print wallpaper you may remember from your Grandmother’s or Great-grandmother’s house. These flowers are BIG. Think 12” to 24” across – or even larger. Perhaps the size is why floral prints are no longer considered “fussy” or feminine?

 

Many of the new wallpapers display light or colorful flowers against a dark background, making the flowers pop out. The papered wall becomes the focus of the room, much like a wall-to-wall mural.

See examples at House Lust (https://houselust.co.uk/real-homes/2016/3/16/interior-decor-the-new-statement-wall)

 

You may love the look, but should you go for it if you plan to sell your Tamaqua home this season?

 

I’d say no. Not everyone will love it, and my guess is that more than a few will actively dislike it. Although using wallpaper in a peel-and-stick application means it will be easy to remove, first impressions count and some may reject your home without seeing beyond the flowers.

 

Instead of buying wallpaper, try using the big, bold flowers on draperies, upholstery, area rugs, shower curtains, art, and of course, floral arrangements. The advantage is that you will take these items with you to your next home. And… if you still love the look you can wallpaper that new home to your heart’s delight.

 

Not sure what improvements you should make before you offer your home for sale? Call me. I’ll be glad to tell you what’s pleasing today’s buyers.

Why Do Tamaqua Agents Ask You to Meet Before Viewing Homes?

You see a house online that you want to view. You drive around a neighborhood and see a house for sale that you think looks interesting. You call an agent ask to see it "right now."

 

And then… that agent will begin asking you questions, then suggest that you meet first at his or her office, or perhaps at a nearby coffee shop.

 

Why?

 

For one thing, Tamaqua agents want to know that you're serious. If you’re really interested in purchasing a home and ready to do so, you’ll be willing to take the proper steps. One of those steps is to meet first and discuss your situation. Another is to become pre-approved for a loan before you begin to shop.

 

No one wants to waste their time or their gasoline showing homes to people who simply want to look for decorating ideas or whose primary hobby is looking at homes. (Yes, that is a hobby for some people, and they don’t restrict it to visiting open houses.)

 

The second reason is safety.

 

It just isn't safe to go meet a total stranger in a house where the occupants have left to accommodate a showing. Every now and then we hear news of another tragedy - when an agent is kidnapped and killed because he or she responded to a call and went off to meet a stranger.

 

No one can tell from a name or a voice on the phone which person is going to be that one in a million with evil intent.

 

When you’re serious about wanting to purchase a home, first visit your lender and become pre-approved for a loan. That will show you what you can spend so you don't waste time and energy looking at the wrong houses. It will also save you from heartache. If you fall in love with a house that’s out of your price range, none of the homes you can buy will measure up.

 

Just as importantly, it will show the sellers that you can carry through with a purchase. In a fast moving market, your pre-approval letter could well be the factor that gets your offer  accepted over others.

 

Once you're approved, make an appointment with a Tamaqua agent and explain your needs and wants. That will help your agent narrow down the choices to homes that will satisfy all your needs and as many of your wants as possible.

Want to sell your Tamaqua home? Consider the alternatives.

When you’re thinking of selling your home here in Tamaqua you have several choices:

• List with an agent 
• Offer the home For Sale by Owner 
• Sell to an investor 
• Sell to one of the new “We buy homes” companies

As a REALTOR® I do believe that listing your home is the best choice.

We agents have more contacts, more places to showcase your home on line, and more experience in everything from setting the right price to negotiating the offer and guiding the transaction through closing.

 

A top agent will guide you on how to prepare your home to gain top dollar, will advise you on staging, and will use professional photography, virtual tours, and even aerial photography to showcase your home.

 

In addition, agents are bound by the Code of Ethics and have Fiduciary duty to their clients. Investors and the buy out companies have duty only to themselves.  

 

The disadvantage: You’ll need to get the house ready to show and you’ll need to make it available for showings – sometimes at inconvenient times. You’ll also have to have the house ready for inspections and appraisals, perhaps re-negotiate after those results come in, and wait for the buyer’s lender to give final approval.

 

When you sell For Sale by Owner you don’t have to pay a real estate commission. 

The disadvantage: Statistics show that homes sold by owner sell for considerably less and take longer to sell. One reason is the fact that most individuals have no idea how and where to market their homes on line, and that’s where about 95% of all buyers begin their home searches.

 

In addition, FSBO sellers are tasked with the job of showing, negotiating, etc. Would you know how to qualify a buyer? Would you feel comfortable calling the buyer’s lender to discuss their pre-approval before accepting an offer? A good agent would.

 

You’ll also be responsible for making sure every line in the contract says what you hope it says. Here in Pennsylvania our purchase contracts are typically 13 pages long. Some of those pages are required disclosures – and most people aren’t even aware that they exist until an agent presents them. A wrong move on the sellers part can cost thousands – and can even trigger a lawsuit.

 

That being the case, if you’re selling For Sale by Owner, you really should have a competent real estate attorney on hand.

 

After all that, you’ll face the same insecurities over the appraisal and inspections, and you’ll still have to be patient as you wait for the buyer’s lender to say the transaction is clear to close.  

 

Selling to an investor has a few advantages. 

For instance:

• You don’t have to get the house “show-ready.” 
• You don’t have to make the house available for multiple showings. 
• Investors generally purchase as-is.
• You can usually get a firm offer within a day or two.
• Closings are usually fast – but investors are flexible, should you need extra time. 
• Quite often there is no inspection nor appraisal required, because they do their own inspections and pay cash.

The disadvantage: They will pay you considerably less than you’ll get by offering the house on the open market.

 

Selling to one of the new “We buy houses” companies is probably the poorest choice. 

Why? First, because their offered price will be far under market value, but that’s not the worst of it. Worst is that their contracts often have loopholes.

 

An independent investor will quote you a price based on his or her evaluation of the home’s condition. The price they quote is the price they’ll pay. It may even include paying your share of the closing costs – so you’ll know the bottom line before you accept the offer.

 

These new companies often have a different approach. In some cases, their contracts include a clause that allows them to reduce the price after receiving the results of an inspection. In other cases, they have a built-in, standard repair deduction that comes off the stated offer price.

 

The price you’re quoted at first glance is not the price you’ll receive at closing.

 

My best advice: If you’re thinking of accepting such an offer, take the contract to an attorney first. Have him or her go over it to make sure it means what you think it means.

 

And… why not hire an appraiser? Then you’ll know if the offer they give is a good one – or if you’ll walk away leaving $20,000 or $30,000 on the table.

 

If you’re thinking of selling your home in Tamaqua and can’t decide which route to take, call me. I’ll be happy to show you what other homes like yours are selling for in today's market. I'll also be happy to show you what I do to put my listings in front of the most possible qualified buyers.