Not long ago, when multiple bidders were all purchasing in Frenzy, the truly Desperate Buyers resorted to writing love letters to the Sellers. We all saw their hand written letters of being a First-Time Buyer chasing the American dream or of Families needing more space.
Today's Real Estate Market, however, calls for a different kind of letter, no more Warm & Fuzzy Letters but more like a cold splash of water. So Active Rain, do you think letters like this will help Sellers to stop "Living The Dream "
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 to only a year ago, according to the Standard & Poor's/Case-Shiller U.S. National Home Price Index. That's the biggest decline in the 20-year history. 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 well over 4 million. At that rate we have an 11 month supply of properties currently on the market. 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 connections that you have.
We all read the headlines. 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. 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,
Today's Buyer in 2008
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