Excited to share this article from the SF Chronicle, which features some of my tips on how to right a WINNING buyers letter.
The path to owning a home isn’t easy. After weaving through the pre-approval process, the cobbling together of every asset, the scheduling of showings and open houses, even if you’ve settled on your dream house, now you’ve got to put in an offer.
In San Francisco’s housing market, that could mean an it’s time for the uncomfortable bidding war or worse — a downright loss of those rooms you’ve been staging in your mind.
While home prices are leveling out, competition is still fierce and it’s not uncommon to be beaten out by an all-cash offer or simply a slightly higher bid. But real estate transactions can be very formulaic and don’t always provide all the context to a situation, leaving sellers to choose their buyers based on numbers alone. Especially in a city like SF where sellers are likely to get multiple, very similar bids, it can be helpful to write a letter to the seller of the home. It can seem cumbersome and even a little silly, but it could also make the difference from getting your dream home or not. Here’s how to write a good one.
PERSONALIZE IT
It’s good to have a general template crafted going into the home buying process, but each letter should be customized to the property. Add in details about the home when you can, like how you love the built-in banquette or the particular street in that particular neighborhood. A little compliment never hurts.
“Rarely do a buyer and seller meet in person, so a personalized letter can be your one shot at appealing to a seller's emotional sensibilities to share your story of why they should sell the house to you,” Emily Beaven, a realtor at Compass said. “It's all about finding honest, personal connections.”
FIND A COMMONALITY
Your real estate agent may be able to help you find out what you have in common with the seller that can help you connect on a personal level. Maybe they’re also big dog lovers or they raised a family there and that’s what you hope to do — making this small connection may give you a leg up over others.
“Recently, I had a buyer that beat out the competition because of their letter,” Beaven said. “The seller was an art collector and so was my buyer, so my buyer wrote a letter complimenting them on their collection piece-by-piece in great detail...It worked and they got their dream home!"
KEEP IT POSITIVE
If your offers been trumped in the past, this letter is not the time to complain about it. A seller is unlikely to feel bad for you and you’re more likely to come off as a complainer. It’s also best to steer clear of mentioning any remodels or repairs you would do to the house if accepted — the seller might have emotional ties to that kitchen you want to rip out.
PROVIDE MORE FINANCIAL CONTEXT
Even if you’re not the best offer, there may be something more you can offer that would sway the sellers. If you’re flexible on timing, offering to rent the home to them while they move out could be good. In San Francisco, it’s not uncommon for buyers to offer stock in a company as part of their offer.
“Buyers have offered Tesla and Pinterest stock to the sellers on separate occasions last year for my listings!” said Danielle Lazier, a real estate agent with Compass.
KEEP IT SHORT AND SWEET
You want to appeal to the seller, but no one is going to read anything that’s more than a page. A couple of paragraphs should be all you need to get your point across. Sometimes the supporting documents will be what really makes a difference.
“I had a buyer from France who wrote a letter to my sellers — we were representing the sellers — explaining how the building looked like her grandmother's home in France and her father, an architect, drew a few sketches of the property,” Virginia Thackwell, an agent with Zephyr Real Estate said. “It was the best letter I've received in 14 years!”
PROOFREAD IT
Poor spelling or bad grammar turn plenty of people off. Make sure at least one person looks over your letter so it’s in the best shape possible.
By Tessa McLean