How to Write a Love Letter

In this competitive Bay Area, California real estate market, often times it's recommended that buyers submit a "love letter" along with their offer.  When I mention this to my clients, they have usually never heard of this before.  What is the purpose of a real estate love letter?

Sometimes, when a home seller is looking at multiple offers, and has to make a decision on which buyer to go with, the seller will look at every aspect of the offer.  Obviously the price is important, as well as the terms (Any contingencies? How long is escrow?), and how qualified are the buyers? (Here is where proof of funds and approval letter are needed).
And lastly, who are these buyers?

You may think that a seller doesn't care who buys their house and really just wants the highest and best price.  But that's not always the case. Homeowners may have a special connection to their home, may have lived there for decades and are friends with their neighbors. They may want to select buyers who they feel will fit into the community they are leaving behind.

Also, if buyers are looking at two very similar offers, it could be that the love letter puts one buyer a notch above the other. Any little advantage helps in this hot real estate market.

I always ask the listing agent if they think a Love Letter from my clients may be useful. If the answer is "no way" then I don't bother, but often times you'd be surprised by the answer.  It can't hurt to ask. Be sure your Realtor is asking for you.

5 Tips On How to Write Your Love Letter

1. Keep it short. As with anything these days, people don't want to read anything long.  One page max, half page is even better.
2. Use the homeowners actual names.  Your Realtor can get that for you.  Much more powerful than writing "Dear Home Owners," 
3. You can include where you work, where you are originally from, where you went to school and any hobbies/interest. All things that could make a connection between you and the sellers. ("Wow, they play the ukulele too, AND they went to the University of Hawaii?")
4. Write about why you like the house/neighborhood. 
5. Do not include pictures of yourself.  Tempting, but it's not recommended due to discrimination concerns. 

Some clients find it overwhelming to have to write a letter like this.  I have samples I provide to my clients and I also tell them that when they write a letter once, they can re-use the same letter with slight edits.

In this market, be sure your Realtor takes every step possible to give you the winning edge when making an offer on the house you want.

How to Rent In the Bay Area.

One of the most common requests I get as a Bay Area realtor is help with finding rentals. The rental market is tight now, with prices high and competition steep.

There used to be a much bigger demand for realtors or property managers to help with finding rentals. Now, with Craigslist and other websites, it's more of a do-it-yourself endeavour and a realtor can't always help you as much as you might expect. Most rentals end up on Craigslist, and only some rentals end up on the MLS (multiple listing service), a database only available to brokers and realtors.

Times have changed... When I tried to rent a place in San Francisco in the late 90's, this was during the previous bubble and the rental market was crazy, I was up against applicants who had made VHS interview tapes of themselves to present to the landlords. 

A realtor can be of help to renters, however, especially if you are out of town. Your realtor can tell you about the neighborhoods, schools and commuting. And even more valuable, realtors have access to their own network who will often let their co-workers know of an off market rental, or a rental that is about to come on the market. Being ahead of the game is a plus in this market.  In addition, your realtor can ask her network for rental leads on your behalf.

Viewing places and gaining access to them with a realtor is also a benefit. You don't have to coordinate with the landlord or deal with general open houses for rentals.

Just as during buying or selling, your realtor can be your advocate and help you navigate your way through the competitive rental market.  Your realtor will also help you with the application process and makes sure you have everything ready ahead of time, to help you stand out.

Things You Will Need to Apply for Rentals:

• Print out your credit history, using one of many free services such as CreditKarma.com. Be ready to explain any blemishes on your report.
• Have your list of references ready.  
• Write a good cover letter.  Sell yourself. Mention your rental history, your family, your work or income source.

Be patient. Just as with buying a home, chances are you'll will lose out on a few before you get the rental you want.