Special offer

Personalizing the purchase offer ... a little bit can go a long way!

By
Real Estate Broker/Owner CalBRE# 01433049

Back in 2005-2006, when we were experiencing a rapid increase in home prices (not value, just prices), a purchase offer was usually accompanied with an letter from the buyer's agent and sometimes even the buyer.

Usually, these letters were pretty sappy. They went on and on about how little Bobby would just LOVE the back yard, and how they would take care of the flower bed.

Some purchase offers were delivered with a bottle of wine. Some with flowers. I even saw one delivered with the results of an ultrasound. There was a baby on the way! How could you NOT sell us this house??

Those days are long gone, but I still believe in personalizing the purchase offer just a little bit. If you don't tell the seller something about your buyers, they will always be just a name on a contract. Typed letters in black ink.

When I e-mailed a purchase offer along with a photocopy of the earnest money deposit, buyer's inspection advisory and pre-approval letter, I added a little summary about my clients. I made them real people.

We ended up in a multiple counter offer situation. After signing the counter offer and crossing our fingers, the listing agent called to tell me our offer was accepted. Evidently, the offers were really close, a "toss up" he said. But ... he thought what tipped the scale was the knowledge that my client is a firefighter.

 

Unbeknownst to us, the seller's late husband had been a firefighter in San Francisco!

 

Personalizing the purchase offer ... a little bit can go a long way!

 

Posted by

 

Cynthia Larsen (707-332-2560) is an independent real estate referral broker in Sonoma County, California as well as a Certified Probate Real Estate Specialist.

CA Broker License #01433049

Comments(25)

Mary Lockman
Windermere Real Estate Methow Valley - Winthrop, WA
Methow Valley Real Estate

I send a letter that lays out the compelling points in the negotiation about what is causing the offering price to be lower than asking, (by right about 30- 40%). It is carefully crafted to not insult the seller, but drive home the buyer postion in writing so I am sure the seller who lives far away will receive it.  Our market is different in that it is second homes. Sometimes I do this in reverse for the seller so my list sales are withing 5% or less of asking.  My sellers are turned off by personal letters for the most part.

Apr 27, 2011 01:37 PM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

I do it every time. Even on REOs. There is a human being who screens those things at some point, and you never know what will resonate. Once on a short sale deal, where I had the buyer, I'd included a letter about my first time buyer and how she'd taken classes, saved up money, and been beat out over and over again.  The bank didn't want to grant us an extension till her home buyer assistance was funded.  The guy who received our fax had bought a short sale earlier that year, and knew what she was up against.  He talked to somebody and it happened. We owe it to our clients to do every little thing to help them achieve their goals.

Apr 27, 2011 01:42 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Hi Cynthia....I remember when all offers had some information about the buyers.....it was standard and usually helped in closing the deal.....too bad so many young agents have not been exposed to that....I think I feel another post coming tomorrow about this....

Apr 27, 2011 01:45 PM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Cynthia, congrats on the sale.  I've used this tactic too - of accompanying my offer with a letter about the buyers and it often has the desired positive effect.

Apr 27, 2011 01:49 PM
Greg McCown
Century 21 1st American - Tucson, AZ

Wow, an ultrasound?!!?  Great recommendationa and great example.  I've done this in the past, but haven't in the last several years.  I might just start again.

Apr 27, 2011 02:02 PM
Sara Woolford & Steve Golson, ALHS
iTexas Realty Co. - San Antonio, TX

Hi Cynthia-

What a great example of showing a little extra personality with your offers!

--Sara in San Antonio

Apr 27, 2011 02:12 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Cynthia, You just never know what the tiebreaker will be.  It's not always about the dollars!

Apr 27, 2011 02:34 PM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Some information can be helpful.  Deciding what can be helpful and what should not be discussed is a problem for some agents and for some buyers and sellers also.

Apr 27, 2011 03:07 PM
Peggy Hughes/pha logistix, inc.
pha logistix inc - San Francisco, CA
SF NYC LA

Great post Cynthia... and, it's true, you never know what is going to tip the balance in your favor!

Apr 27, 2011 03:07 PM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Cynthia - Not being a Realtor submitting offers, I'm having a hard time understanding the need to share my borrowers personal info with the sellers.  While I'm sure there are a gadzillion stories of how this has won a negotiation but I'm still not comfortable sharing my borrowers personal info but that's just me.

Apr 27, 2011 05:23 PM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Karen - I wouldn't expect any less from you!

Gay - Many times a "connection" between the seller and buyer is the clincher ... you get it.

Brenda & Ron - "solid" is good whether an investor or not!

Randy - Maybe this is more of a California thing?

Mary - I never liked the personal letters, never did them. But if I e-mailed or presented an offer in person, I would just write a few lines about my clients.

Karen - I do it for REO's as well. I know it probably won't get past the listing agent, but I do it anyway. Habit if nothing else.

Barbara - is there a moment in your waking life that you don't feel a post coming on :)

Leah - As long as the letter/note is sincere, it sure can't hurt!

Greg - Love your new profile shot! I think it always helps to personalize your buyers, even when we are dealing with multiples. It can really help in case you need an extension.

Sara - thanks!

BLiz - exactly ... I've been surprised many times as to how a seller chooses which offer to go with.

Judi - I know exactly what you mean.

Peggy - Yep - like BLiz says, it's not all about money!

Apr 28, 2011 03:29 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Donne - coming from the lending side of the fence, I can understand your point. You deal with confidential information. SSN's, W2's, Tax Returns, FICO scores, Credit Reports and bank accounts. I'm not talking about any kind of personal information like that. You say "borrowers", I say "buyers", I think there is a different mindset there, a little gray area. When I "personalize" my buyer it may be as simple as letting sellers know that my buyer is in the Coast Guard and is transferring to Two Rock Training Center. In this particular case, I mentioned that my buyer was a Fire Fighter in Sonoma. When you let the seller know there is a human on the other side of the offer, the seller may connect. My neighbors accepted an offer out of multiples because the buyer was transferring from Eureka, their home town. And as Judi (#12) pointed out, some information shouldn't be discussed, such as sellers going through a divorce.

Apr 28, 2011 03:41 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Cynthia, I did incorporate an information letter (not sappy) about my clients with several of my offers until one day I bumped into a seller and began talking about her house which had just sold.

I found out that my client's information letter was never presented along with another agent's bottle of wine. The other agent had thought my clients had got the house and we had thought the same of them. Actually another agent in the listing agents office sold the house…

To make a long story short, I don't waste your time anymore... 

Apr 28, 2011 04:40 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Actually another agent in the listing agents office sold the house…

I think that says it all, Paul. We can only hope that what we send to the listing agent is presented to the seller. The listing agent shouldn't be "filtering" the presentation of an offer. That's like a letter carrier deciding what goes in our mailbox.

Apr 28, 2011 04:47 AM
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

It is a great idea...remember when we presented all offers in person...then you could really tell the buyer "story"   I miss that actually!

Apr 28, 2011 03:53 PM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Cynthia - Ok, I see what you're getting at now.  Sorry for the confusion, I guess I didn't understand the process because I have to say, I don't see or hear about this practice.  I will definitely keep it in mind though.  It obviously works sometimes.  Perhaps I'll mention it to my borrowers, God knows they need all the help they can in improving their chances of getting their offers accepted.

Apr 28, 2011 04:34 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I hear ya on the "sappy" stuff . . . I do like a cover letter as you said, makes the buyers real people.  But taking care of the flower bed . . . well, that might work for some, I suppose.  Glad you got an acceptance.

Apr 28, 2011 05:17 PM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

David - I hear ya, and it's especially important to let the seller know how "ready, willing and able" our buyer is when the seller has already had one deal fall through.

Deborah - you're right. I've only presented an offer in person once. It was right when I started real estate and e-mailing or faxing offers became the norm.

Donne - your job requires so much stuff that is strictly confidential. The selling agents job (if they are doing their job) is to make the seller comfortable with accepting their clients offer.

Carla - You'd be surprised about the flower bed :)

Apr 29, 2011 09:39 AM
Ken Barker Realtor® GRI, E-Pro Certified
Dilbeck Real Estate - Burbank, CA

Cynthia - Always Always Always. I give a brief explanation of who my clients are, what type of work, where they might be now, info on my offer etc....

I have only had ONE client write their own letter to the seller. I believe they won in multiples because of the sincerity of thier tone of the letter.

Always Always Always something.

Apr 29, 2011 04:59 PM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Ken - I remember when agents encouraged the buyer to write their own letter, those were the days. And yes, something has to be included with the offer, you just can't submit an offer with nothing to back it up.

Apr 30, 2011 04:04 AM