Love Letters or Liability Letters?

As a buyer and/or seller , I'm sure you've heard of “love” letters as a tactic in an attempt to stand out to a seller, especially in hot markets with low inventory and bidding wars. To entice a seller to choose their offer, buyers sometimes write letters to describe the many reasons why the seller should “pick them” over the competing offers & buyers.   

While this may seem harmless, these letters can actually raise fair housing concerns & could open real estate professionals and you (the buyer) to fair housing violations as they often contain personal information that reveals characteristics of the buyer - such as race, religion, or familial status, which could then be used, knowingly or through unconscious bias, as an unlawful basis for a seller’s decision to accept or reject an offer, hence putting a seller in an uncomfortable position that may make the letter do the opposite of the intention - have the seller pass on your offer!

Using protected classes/characteristics as a basis to accept or reject an offer, as opposed to price and terms, would violate the Fair Housing Act. i.e.: Consider that writing to the seller that they can picture their children running down the stairs on Christmas morning for years to come in the house.  This statement not only reveals the potential buyer’s familial status but also their religion, both of which are protected classes/characteristics under fair housing laws.  

Here are some best practices to protect yourselves from fair housing liability when submitting & reviewing offers: 

• There are so many areas in real estate that are confusing so educate yourself by speaking to your Real Estate Agent and/or an attorney about the fair housing laws and the pitfall of buyer letters which may hurt, not help, you in the purchase.
• Real Estate Agents cannot or should not deliver buyer letters & advise others that no buyer letters will be accepted as part of the MLS listing.
• A seller's decision to accept or reject an offer should be based on objective criteria only, not personal criteria. 
• If you insist on drafting a buyer letter, an agent cannot help you draft or deliver it
• The National Association of Realtors (NAR) cannot tell a buyer not to write such a letter, but a Real Estate agent could refuse to present it to the seller. 

Is the practice racist or discriminatory?