When the housing market is booming one of the techniques that many buyers use to sweeten their offer is to include a personalized letter to the seller regarding how wonderful they feel the property is and why it fits them so well.
When the housing market is booming one of the techniques that many buyers use to sweeten their offer is to include a personalized letter to the seller regarding how wonderful they feel the property is and why it fits them so well.
This practice is highly effective because it plays on the emotional attachment that many have toward homes. It does have its dangers though. Just as a seller or real estate agent must be careful in how they word a listing to avoid violating Federal Fair Housing Laws, they must be cautious in what they allow a buyer to include in their offer to make sure it meets ‘The Fair Housing Act’. guidelines.
According to ‘The Fair Housing Act’ a real estate agent may not include any information, in any part of a transaction, that could be “perceived as discriminatory” against a particular race, color, religion, sex, national origin, disability, or familial status (married, single, kids, no kids, etc.). The ideal is that everyone should have a chance to own their dream home free from any bias of any type and failing to meet these standards can have serious legal ramifications.
Home Buyer Letter Mistakes
While staying within the law may seem simple enough in theory, in practice, it can become a little more complicated. Many common phrases that a buyer might use without giving it a thought are actually violations even if they appear benign at first glance.
Even a statement as simple as “We love that that the house would be walking distance from both our child’s future school and the local cathedral.” can be loaded with violations.
It could be construed to be generating bias in favor of people with children, of a certain faith and even without too much of a stretch, people without disabilities that preclude them from walking.
Rule of Thumb
A good rule of thumb is for the buyer to avoid personal references and stick to the features of the house itself. Talking about the spacious yard is fine. Adding that their kids will really enjoy playing outside or having room to run is not. Calling the homes wheelchair accessible is fine but don’t mention that it is a requirement because they or someone in their home is disabled.
It cannot be expected that those outside the real-estate industry would even be aware of much less understand the pitfalls contained in the above examples. As a real estate professional though, it is part of your job to not only be aware but to protect both yourself and your clients from including prejudice statements in their buyer’s letter.
Common Phrases That Can and Cannot Be Used
There are some recurring phrases that are often seen in buyers’ letters. Some are OK and some are not. Here are a few examples to aid you in guiding your clients and help you understand the differences.
Can
Places of worship
Can’t
Specific church names or references to specific religions
Can
Close to or convenient to parks, walking trails, restaurants, shopping etc. These are statements of fact or features.
Can’t
References to an active lifestyle, healthy lifestyle, outdoor-loving, single, married, professional, etc.
Inclusive is Fine
Wheelchair accessible or diverse are terms that make properties more open not less so are great.
Exclusive is not
Young, mature, professional, starter home, empty nester, family-oriented, child friendly are all phrases that could be seen to exclude other groups so are not acceptable.
Fines for violations of ‘The Fair Housing Act’ are very severe. If you are a buyer, seller, agent, broker or lender that is involved in the transfer of a property and it is found to have included a buyer’s letter as part of the offer, you can be held liable, if that letter is found to be in violation.
Any language pertaining to race, color, religion, sex, national origin, disability, or familial status even in a remote way can place you at risk and should be avoided at all costs. Advise your buyers to stick to the home itself and you are fairly safe but still use caution. When in doubt leave it out.
Have Questions? Ask George!
George A Tallabas III
Associate Broker
RE/MAX Executives
208-880-2333/mobile
www.SearchIdahohomes.com
