In some areas of the country, “love letters” – a note from buyer to seller praising the home – are common. But some of the letters may flirt with Fair Housing Act violations.
The National Association of Realtors® (NAR) Conference and Expo was held virtually in 2020, and many of the sessions involved discussions about buyer “love letters.”
For those who aren’t aware of what I am referring to, “love letters” are written statements that accompany a potential buyer’s offer. While these types of letters are not in and of themselves illegal, it’s important to note that if done without careful consideration, it could end up being a Fair Housing Act (FHA) violation.
How is this a possibility? Let’s examine a couple of examples of “love letters” – one that could be problematic with one that likely isn’t.
Example 1: A buyer drafts a love letter that includes how excited the buyer is to raise a family in the home. They can’t wait to see future children excitedly running down the stairs on Christmas morning.
Sounds harmless enough, doesn’t it? However, this buyer’s letter touches on two protected classes under the FHA: familial status and religion. Should a seller take these factors into account in arriving at a determination to accept the buyer’s offer, it could be a fair housing violation.
Example 2: A buyer drafts a love letter that discusses the buyer’s love of the homes’ architectural features and the buyer’s appreciation of the various details of the home’s construction.
Here, as the buyer solely focused on the property’s characteristics, none of which fall under a protected class, it’s likely not a fair housing violation.
As agents, it’s important to remind consumers about fair housing issues if you see a potential problem on the horizon. While no agent is expected to explain the legal nuances of the Fair Housing Act, it may be wise to suggest a buyer or seller consult their personal attorney if either of the respective parties veer into potential FHA violation territory.
Recently, I personally had a family with two young girls that were very excited about purchasing a home they had seen but knew the market was very strong and were afraid they would be outbid. Their daughters Lily and Hailey, sensing the seller could sell the home to someone else asked if they could write letters to be sent along with their parent’s offer. Little did these girls know the letters they wrote were compliant with the National Association of Realtor compliance guidelines, but they brought tears to the seller who accepted their parents offer.
With inventory levels so low, if there was ever a time in which to sell your home, this would be it! As of July, the median is 49 days on the market, a trend that is 9 days less from last year, and I see it moving lower in the next few months. Looking at sales of homes over the last year, the market in our area is highly active. In July of 2019, there were 345 homes sold in our area where for July 2020 we had 488 sales. Recently Punta Gorda was in the top 3 cities for people who are relocating to Florida. A lot of interest in our housing market is coming from people relocating from the north looking to escape the harsh winter weather and high taxes, but with concerns from this pandemic are looking to move to areas with less congestion where they can work remotely and avoid mass transit. With the influx of those moving to the area competition is fierce which has resulted in the median price of homes rising to $237,450. So not only are our sales looking good, but the price of our homes are attractive as well. Homes valued in the $250,000-$350,000 range are the most popular among buyers right now.
An article I read recently, “More Buyers Nix Inspections as Bidding Wars Heat Up”, a Redfin agent study found that almost one in five offers (19.9%) waived the inspection contingency to make their offers more attractive. This study was done with agents in select major US markets. The previous year it was 13.2%. Although, I understand why some are doing this I do feel this is a major part of home buying not to skimp on.
Our local newspaper mentioned how single family home permits in Charlotte County were on the rise with 216 permits were issued for the month of July which is up over 189 from the same time period a year ago. The value of the permits were $58.5M which is a $9M jump over the previous two July’s. This also represents a 14.3% jump year to year which runs from October to September. 1,791 single family home permits have been issued representing a 22.7% increase over 2019 year to date, and we still have 2 months to go. Total permits account for $487.9M, more than 2019 with 2 months to go and Charlotte County has outpaced the rest of the state which had a 17.1% increase over 2019.
We have a good education system, good government and we offer a vibrant waterfront town with many medical options nearby and our crime is low. It is just a great place to live and why we love to call it home!
While most people would like to talk about themselves, Gary and Gail have always put their clients first, and their diverse backgrounds have provided their clients an unparalleled level of service and knowledge throughout the past years.