"Dear Seller" Letters
A reporter with The New York Times has an interesting twist on the practice of writing letters to sellers, that used to be to beg for the seller to choose someone in a multiple-offer situation. As an aside, oddly, this practice is still alive in Seattle. I got one last month when selling my home. It goes to show how even people actively in the market aren't aware of the trends, fortunately for me.
Anyway, I like the new version even better (though I'm glad I didn't receive one!):
I'm sure some folks here could compose a better one. I may try myself.
There is also one for the reply, but that's not as cool.
Anyway, I like the new version even better (though I'm glad I didn't receive one!):
Dear Seller:
I'm writing to let you know that I would like to make a bid on your property. I love the area and am committed to buying a house nearby. And your home fits my needs.
But given that my offer is well below your asking price, I also feel I owe you an explanation.
First, consider the big picture. Nationwide, home prices in the first quarter of 2008 fell 14.1 percent compared with the same period a year earlier, according to the Standard & Poor's/Case-Shiller U.S. National Home Price Index.
That's the biggest decline in the 20-year history of the data. And just in case you're wondering, during the housing downturn of the early 1990s, the decline was never worse than 2.8 percent.
Not only that, earlier this month, the National Association of Realtors pointed to the huge number of existing homes on the market. As of the end of April, the total number was 4.55 million. At the rate people are buying right now, that represents an 11.2 month supply.
So buyers have options right now. A lot of them. I'm no different. Your home is great, but it isn't unique. Few homes are. I know this may be hard to hear, since you've spent years creating memories here. But you may be waiting a long time if you hope to find a buyer with the same emotional connection that you have.
My mindset is hardly unique. We've all been reading the headlines. The accompanying stories appear prominently in major newspapers and sit on the Web pages where people check their e-mail every day. Everyone sees them, and the psychic impact is real.
Has your real estate agent laid any of this out for you? Maybe so, and you didn't want to believe it. But it's also possible that your agent, afraid of offending you and losing the listing, simply doesn't want to initiate that sort of discussion. It may be worth sitting down for a candid reassessment.
It will be tempting to view my low bid as an insult. Please don't make that mistake. Your home is genuinely appealing, and I wouldn't have written this note unless I was serious about buying it. Getting a firm offer in this market is an accomplishment. So congratulations!
Oh, and one more thing. You presumably need someplace to move. My guess is that you'll find these same points compelling when it's your turn to buy. You just might succeed in buying for a better price, too.
I look forward to hearing from you soon.
Yours Truly,
The Realist
I'm sure some folks here could compose a better one. I may try myself.
There is also one for the reply, but that's not as cool.
Comments
This kind of letter would be a waste time if you ran into the "dark money" that seems to permeate into in-city nest-eggs at the moment.
Still, in about a year or two, who knows?
That's pretty much all I'm tracking now - overpriced homes I plan to make offers on in a few months, either after they drop the price down to what it's worth, or I try and drop it down for them.