Can Writing a Personal Letter to a Seller Help you Win a Bidding War?
The theme of the last year or so in real estate has been bidding wars. There’s been a much higher demand for homes than homes available. This often led to much higher prices and buyers left without the home they wanted.
What if you could do something non-monetary that could win over a seller, though?
Some people believe writing a personal letter to the seller can be enough to win the bid. Is it?
Selling a Home is an Emotional Transaction
Sellers are often emotional about selling their homes. Some even care more about who their home goes to rather than how much they get. In this case, yes writing a letter could win you the bid in a bidding war.
If you can relate to the seller in some way, the letter may be just what they needed to choose your offer over someone else’s. Quite often the seller receives multiple offers that are the same or incredibly close. A heartfelt note could really tip the scales in your direction.
Selling a Home is a Financial Transaction
Let’s not lose sight of the fact that selling a home is primarily a financial transaction. Of course, sellers want the highest price for their homes. If it comes down to two buyers – one with a higher offer and no letter and one with a lower offer and a letter, most sellers will pick the higher offer. If a property is owned by investors who only look for the bottom line, a letter will do little to sway them.
Find a Happy Medium
So how do you know if a seller will take your offer with a personal letter versus a higher bid?
You have to feel them out – find out why they are moving. What’s their motivation? If it’s a couple selling the home they raised their children in for many years, the letter may go a long way. Chances are they will be more emotional about the move than someone who just moved in a couple of years ago and wants to make a big return.
Let a Real Estate Agent Help You
Trying to navigate the homebuying process yourself can be overwhelming. Even if you have direct contact with the sellers, you might not know their true motive.
Even if you aren’t aware of what they want, your best bet is to maximize your offer as much as you can and provide that personal letter to give it that extra touch.
The housing industry is still booming. With more buyers than sellers out there, finding ways to stand out in a bidding war is key. If you want to write a letter, feel free to write it. Keep it sincere and to the point. You won’t offend the sellers and in the best-case scenario it might be what helps you win the bid on your dream home.
If you’re ready to win your dream home in a bidding war, contact me today to see how I can help you!