If you don’t live in Denver than you may not have heard that Denver’s real estate market is INSANE right now, and there just aren’t enough homes (or rentals) to keep up with all of the growth that’s happening here. House prices and rental prices have sky-rocketed, most houses are going under-contract within 24 hours of going on the market, and buyers are even offering significantly more than the asking price on homes just to become the top bidder and increase their chances of getting their offer accepted. To say that it’s a seller’s market would be a massive understatement.
So what are you supposed to do if you don’t have the most money to offer? How are you supposed to even be considered in such a competitive market? Well, the other day I was chatting with a friend of mine, Nita, who’s a real estate agent here in town and she was telling me about how buyers are setting themselves apart from the pack by writing what she called “Love Letters” to the sellers. She told me about a couple of situations where her buyers didn’t have the highest offer but “won” the home because of the personal touch that the letter provided. Pretty awesome, right?
I asked Nita to tell me a bit more about these “Love Letters”…
“I have personally been involved in homes selling within 24 hours with multiple bids. One successful strategy I have used for my clients is to utilize what we call a Love Letter.
A Love Letter is a way to tug at the heartstrings of sellers where you essentially paint a picture of why you love their home. The letter is then submitted along with the official offer on the home, and the pre-approval letter from the lender. This is a very effective technique because most sellers want to know that their home will be loved and cared for in the future.
To write a successful letter you’ll want to convey to the seller’s the reasons that you love the home. You’ll want the letter to only be about 1 to 2 paragraphs long, so do your best to get your passion for the home across in a succinct way.
Here’s an example of what you may want to include:
‘We absolutely love your home! From the moment we walked in we could envision ourselves living there — cooking dinner in the beautiful kitchen, spending family time together in the living room, and hosting BBQ’s on the back deck while the children play outside. Most importantly, we can picture raising our family there.’
Below is an excerpt from a Love Letter that one of my seller’s was on the receiving end of and because of the personal touch the buyer won the bid despite there being competing offers on the home. The seller’s chose this offer because they could feel the buyer’s passion and they liked hearing that the vintage elements of the home would be respected and kept in tact; two things that were very important to the seller.
‘This is the first home I’ve purchased on my own and I am very excited about the possibility of being the proud owner of this property! I plan on doing some improvements that stay true to the period of your home. I want to spend my time fixing the yard up, adding beautiful flowers that will come back year after year for myself and the neighbors to enjoy. Since viewing your property, I’ve even explored purchasing 50’s/60’s style furniture and found the best 1950’s patio set that would be absolutely perfect for the backyard.’
In both cases the seller’s stated that the Love Letter had put the buyer in the lead. Your Realtor will want to establish a relationship with the other agent so that besides what you notice inside the home, you can find out what is important to the seller’s. By knowing what’s important to the seller you will be able to address what’s important to them.”
I was curious if there were any situations where a Love Letter should not be used. Nita said that, “A Love Letter probably wouldn’t work for a fix-and-flip. If the seller has not lived in the home, he or she wouldn’t have memories to ponder, and they are only focused on the bottom line.”
If you need an agent contact Nita Kolarsick at Nita@NitaHome.com or by phone at 303-250-8280.
Have you heard about Love Letters before? Do you have any experience with them? I’m curious what you think about this concept.