Are cover letters attached with offers a good idea?

Before this past week, I would have said yes.  Now, after receiving two cover letters from the same agent (one on the initial offer and one on the counter offer) on a property I have listed, I would have to say, “Maybe”.

I do feel it is important to have your agent write a cover letter and attach it to your offer.  A contract simply is a bunch of terms and conditions for which it has no face and a very limited story.  There is no personality to a contract and they look pretty much the same from contract to contract. 

What will make you stand out from one contract to the next is to personalize it.  Give a meaning to your offer, as well as accent your fine features (not your looks). 

What I mean by that is, if you have 800 FICO scores tell the your agent should tell the seller, because you are well qualified.  If you are doing a full documentation loan, the seller should know.  Your agent should tell them how much you like their home, how you want to start a family there and take care of the home with the same care and detail as they did. These are all positive things.  Also, justify your price by listing comparable properties that have sold and tell them how you feel they were comparable (don’t exaggerate or lie. You lose credibility right off the bat if so.)

I have yet to come across a seller who doesn’t have a personal attachment to their home, so if you tell them you like their home and can realistically justify your price, how do you think they will receive your offer?  They may be willing to give your offer first choice over another, or they may even be willing to give up more if they have a good connection.

Now, for the reason I am writing this post.  When should your Realtor not attach a cover letter?

When your agentcompletely rips the Seller’s home and tells the seller how bad their home is and how much work needs to be done, in writing, before they even have a chance to look at your offer.  

I don’t care what kind of offer you are coming in with, the seller will not be feeling good about doing a transaction with you when your agent rips their home.  My first thought is “Why are they trying to buy this home if you think there are so many things wrong with it.” Which is the same thing the seller says.  The real reason of course is because the agent is trying to justify either their clients low-ball offer, or hoping they can convince the seller to come down by pointing out all the problems with their home.  Not a good idea. 

The focus for the seller immediately goes away from the ultimate goal, which is to get the home sold and turns into a personal battle.  It focuses more on the personal insults that the seller is feeling.

The second, no no, is telling the seller how terrible the market is, how it will get worse and how they should be lucky to have you as a buyer.  Again, wrong ego to stroke.  If the market is so bad and getting worse, why is this buyer trying to buy now.  You come off looking like you are trying to play games, which again goes back to personal insults.  No one likes being lied to and if a seller thinks you are misleading them upfront, you will lose credibility.  Keep the negative stuff out of the cover letter, and stay positive.