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spidermansaysherp t1_j68i80h wrote

Reply to comment by gowhatyourself in Report: The State of Housing in the Richmond Region 2023 by opienandm

You're not doing your responsibility as a real estate agent if you don't encourage your clients to write a "love letter" and include a photo if it will help that specific client. An individual client doesn't need to care about the larger discriminatory system when they are trying to buy a house for their own family. People don't want an agent that cares about all possible homebuyers, they want an agent that cares about themselves as a homebuyer. This is the foundation of the principal-agent problem and everyone should take all steps they can to give themselves the best chance they can to get the house they want in this market.

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goosey65 t1_j68jgrf wrote

While one individual choice can’t change a systematic issue on its own, we, as individuals, can have and should have personal ethics that impact our larger decisions.

In recent years, many in the real estate industry have pushed against writing to the home owners. Also, this person didn’t say they didn’t tell their clients not to, he said he pushes back when people talk about it on Reddit.

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spidermansaysherp t1_j69cybe wrote

I agree with everything you said. The economic reality of the housing market does make it harder for individuals to care about others though because it unfortunately is a zero-sum game currently.

Also, sure, this poster has only warned people on reddit, but that leaves two scenarios:

  1. They tell people on reddit not to it and they also tell their clients not to do it. In my opinion, I don't think that is working in a client's best interest based on what's currently legal. I can't speak to professional or ethics norms because I don't work in that industry.

  2. They tell people on reddit not to do it and then tell their clients to do it. Maybe a good strategy, but people on reddit would probably not be happy to hear this.

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gowhatyourself t1_j69s4hf wrote

> Also, sure, this poster has only warns people on reddit, but that leaves two scenarios: > > They tell people on reddit not to it and they also tell their clients not to do it. In my opinion, I don't think that is working in a client's best interest based on what's currently legal. I can't speak to professional or ethics norms because I don't work in that industry.

As I've already said that as an agent I'm not supposed to have anything to do with buyer love letters. I tell buyers they are a dumb idea that could backfire badly on them because they could just as easily be discriminated against. My broker does not approve of it. The NAR and RAR absolutely do not approve of it and have sent out numerous bulletins and emails saying they do not approve of it and do not want people to engage in the practice. I'm pretty sure HUD has even come out and said they can put you in legal jeopardy over fair housing laws. Agents who are using them regardless of all of these warnings are not agents I would advise working with for the same reason I wouldn't suggest working with agents who skirt other best practices, procedures, or laws.

I also tell my sellers that we should not accept letters under any circumstances and that I will be telling agents submitting letters that they will not be looked at or reviewed by the seller. I have picked up the phone and lit people up who sent me letters after stating up front that I do not want to see them.

Most agents agree with this position! Many will specifically state in listing agent-only comments that buyer letters will not be reviewed or passed on to the seller and that they do not want to receive them. Including them could negatively effect the perception of your offer. I'm not an outlier here. Suggesting that I am not working in the best interests of my clients is nuts considering that engaging in this kind of behavior can actively work against the interests of a client, put you in jeopardy with your brokerage/RAR/HUD, and even leave your buyer open to being discriminated against.

Or I'm making all of this up in an effort to misdirect the entire RVA reddit real estate market to give my buyers the unfair advantage. Totally plausible of course. Sure. Why not.

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spidermansaysherp t1_j6a10ua wrote

Whatever dude, doesn't affect my livelihood in any way. Writing letters worked for me and lots of people I know. I don't agree with you and that's fine.

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gowhatyourself t1_j6afuym wrote

> Whatever dude, doesn't affect my livelihood in any way. Writing letters ::insert discriminating behavior that benefits you here:: worked for me and lots of people I know . I don't agree with you and that's fine.

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[deleted] t1_j693grl wrote

[deleted]

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spidermansaysherp t1_j6991pa wrote

Then change the policy or law, a real estate agent is supposed to represent their client, not all possible clients.

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gowhatyourself t1_j69cnza wrote

It is the policy of most brokerages that you do not get involved with buyer love letters. Many states have banned the practice. The NAR has repeatedly told people to stop doing it. What you are suggesting I do is ignore all of this even though there is just as much of a chance it could backfire. It is a monumentally stupid take.

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khuldrim t1_j68kdo5 wrote

The letter writing thing is a whole can of unprofessional worms and if I were selling an deceived one straight into the trash it would go because if I opened it and there was a picture of a minority family and I didn’t pick their bid I’m opening myself up to legal action.

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Suchaweirdlife t1_j68yunh wrote

We recently sold a house in Northside and one of the offers included a love letter. I was totally disgusted by the tactic and it completely turned me off. The love letter writer did not get the house

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bastard__stepchild t1_j69b8ne wrote

Good on you. I think I would feel the same way. Reminds me of some “good ol boy system” type shit

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spidermansaysherp t1_j69djhx wrote

Thank you for sharing your anecdote. Based on my anecdotal experience, we did write a letter and did get our house during the pandemic.

Not many ways to differentiate offers when people are submitting bids waiving inspections and 50k above asking.

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plummbob t1_j6cuglq wrote

> everyone should take all steps they can to give themselves the best chance they can to get the house they want in this market.

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why artificial shortages lead to discrimination and inefficient allocation 101.

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if its anything other than "that is the best price," then the we need more housing competition.

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spidermansaysherp t1_j6d20rt wrote

Yeah sure, sales have no emotional component at all. Humans are just logic machines. /s

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plummbob t1_j6dn4xd wrote

People express that component in the prices they offer. Shit like racism and other forms of discrimination can basically be priced out of the market with enough competition..... as firms don't have the market power to hold out or use non-price forms of discrimination.

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