U.S. District Judge Marco Hernandez has ended a ban on so-called love letters that prospective homebuyers can send along with their offers on a house, stating that the letters were a form of free speech.
The original ban, passed through the Oregon Legislature last year, was meant to curtail discrimination. However, the judge decided this was a violation of free speech, and actually hurt lower-income buyers’ chances of getting a house because it prevented them from arguing why they loved the house and why they might deserve the house over, say, an out-of-state buyer with cash.
For realty agents, the love letters were a double-edged sword.
“I found myself being grateful that we didn’t have real estate love letters to read along with the offers,” said Connie Hackenbruck, a broker at the Corvallis real estate agency Northwest Realty Consultants, which also specializes in for-sale-by-owner services and per-hour consulting. “It is heart wrenching for me as the sellers agent if I am moved by the letters! But I know I have been hired to facilitate a business transaction. My goal is to help my sellers get the best price on their home that they can.”
Anyone who’s tried to buy a house in Oregon in the past decade knows, however, that the letters do little to help their chances, but many use them anyway. Some in Corvallis use letters in the hopes the seller would rather see a family in the home than letting the house sit empty as an occasional or second home for wealthy students and their parents.
“What I observed was that all the realtors included information about their clients in their cover letters,” Hackenbruck said. “But in the end, I think most sellers elected to accept their highest-price offers. I’m not sure the personal letters made much difference as we hoped they would. We hoped for sellers with a heart for the people buying their homes. But when push came to shove I think the money was more important.”
According to Redfin.com, Corvallis home prices were up almost 30 percent over last year, and the median price of houses sold is $567,000. Most homes get multiple offers and sell for as much as 9 percent over asking price. Even offers over the list price get turned down for straight cash of the same amount.
As house prices go up, supply has been going down.
The U.S. Census Bureau states, “Both rental and homeowner vacancy rates decreased between 2009 and 2019 as the nation recovered from the foreclosure crisis. Housing supply then tightened further during the COVID-19 pandemic.”
According to The Oregonian, the Oregon Real Estate Agency does not plan to appeal the decision.
By Peggy Perdue
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