A real estate love letter can knock 1% to 10% off your purchase price. For a million-dollar home, that’s a hefty $10,000 to $100,000 saved. So, understanding how to craft such a letter is crucial for anyone looking to cut costs on a future property purchase.
Even in competitive markets with multiple offers, a compelling love letter can keep you in the running by establishing a personal connection with the seller. Most buyers skip this step, so taking the time to write one can set you apart and show you’re seriously invested in the property.
For instance, after every job interview, sending a handwritten note can tip the scales in your favor—yet many people don’t bother. This shows that a little effort goes a long way, especially in real estate transactions where establishing a rapport can make all the difference.
The essence of a great real estate love letter lies in:
– Identifying a common connection with the seller.
– Showing you’re a reliable buyer.
– Reducing any perceptions that you’re a profit-seeker looking to flip the property.
– Detailing what you love about the house and envisioning yourself as its caretaker.
– Keeping the letter concise—under 600 words is ideal.
– Ensuring it’s heartfelt and genuine, introducing your family and your future plans there.
For example, in our own experience, we wrote a love letter when we offered $1.55 million on a property listed at $1.95 million, aiming for $2.1 million. We didn’t know the sellers but introduced ourselves as neighbors and shared our plans for the house, emphasizing our commitment to making it a loving family home.
Here’s a brief overview of our letter: We described our current home in the same neighborhood, our family expansion plans, and our extensive experience in remodeling homes. We assured the seller of a straightforward and quick transaction with no financing contingencies, highlighting our readiness with immediate cash availability and further investment for renovations.
This approach helped us initiate negotiations at a much lower price, setting the stage for a potential middle-ground agreement. Although our initial lowball offer wasn’t accepted due to awaiting appraisal, it was crucial in setting the tone for further discussions.
Writing a real estate love letter can humanize your offer in a way that stands out to sellers, potentially saving you a significant amount on your purchase. It’s about more than just the numbers—it’s about making a personal connection that could lead to a win-win situation for both buyer and seller. If you’re not up for writing such letters, investing in REITs or real estate crowdfunding might be a more straightforward approach. Yet, for those willing to put in the effort, crafting a heartfelt letter can be a game-changer in real estate negotiations.
