By now most people know that multiple offers are the new normal in the GTA real estate market. Sellers hold all the leverage while buyers have to remove all their conditions, bid $100K over asking and cross their fingers. But, is there anything else you can do to win a multiple offer?
I wrote about it in detail in another post, but one thing I forgot to mention was the inclusion of a love letter. Yes, that’s right – a love letter.
What’s a Love Letter?
A love letter is a letter written by you, to the seller, and presented to them (by your agent) during the offer that shows them how much you love the home.
What Do I Write?
Be truthful. Be sincere. But most importantly, get specific.
During your walkthrough, keep a watchful eye on what the seller has in their home. Did you notice hockey gear or trophies and your son/daughter plays too? Was there an instrument proudly displayed that you also play? Were there vacation pictures where you’ve been or want to travel to?
Remember, this could be your 6th offer and you just want to finally buy a home, but every time you make an offer it’s an emotional decision. There’s a reason you’re trying to call this place home. For the seller, this could be the home they’ve raised their children in. They could want to see this home go to a young family or couple rather than an investor.
Does it actually work?
Yes. Does it work all the time? No.
If you’re $40,000 under the best offer this won’t work. No matter how sentimental someone is about their home, it’s very unlikely that they will settle for $40,000 less. However, what if you’re $2K short and the other buyer is an investor that plans to just flip the home or turn it into a rental? Then it could very well make the difference.
And while multiple offers are supposed to be kept in the strictest confidence, in practice we know that the listing agent will pass along some hints to the buyer agent and clients that the seller wants to win the offer. Using this letter could give yourself the opportunity to at least match or slightly beat the highest offer.
Any other tricks to pass along?
Here’s a small trick that not everyone uses when they write letters. Add a picture of you and your spouse/family. It humanizes the multiple offer process a bit and could be the difference between your letter and the other four families that also wrote one!
But, yours will be better if you follow these tips…and hire a realtor who knows how to get you that advantage.