JimNastics Blog Post: Mon Mar 16, 2009 4:50 PM CST

JimNastics Kingston, New Jersey USA
Posted:Mon Mar 16, 2009 4:50 PM CST

Please critique and/or improve my letter to renter

Many of you know, that I work as a real estate agent. I have been doing this for a number of years. I wanted to share the following letter that I e-mailed to renters that showed up to my open house on Sunday. I am doing this for 2 reasons. #1) I feel it has valuable information for all USA readers and #2) I am always open to suggestions for improvement. So, feel free to critique and/or make suggestions.

Hello,

it was very nice meeting you and your wife yesterday at (address of open house here) in (town). You seem like a very nice family (I only send this out to people I like) and I would absolutely love to help you obtain a home that is right for you.

I am very happy that you are on the road to owning your first home. I'm truly excited for you. It is an intelligent move and now is an EXCELLENT time for it. Interest rates are very low, prices are lower and it is still a buyer's market. It is critical that you start building equity and frankly the sooner the better. Let me explain why.

As you know, each month that you rent, is a total waste of money. Whenever you move, the only thing you can possibly get out of it, is your security deposit and a small bit of interest. You also have little control over your living situation. However, when you become a home owner, you get tremendous tax write-offs each year, improvements add more value to the home and over a long period of time the value of the home goes up by itself. Indeed, it often doubles in value during approximately a 10 year, or so, period.

So, think of real estate as a long term investment, because long term, it is a path to wealth. Just for a moment, think how many years you would have to work to SAVE $300,000 ?????? Probably forever, right ? But, lets say, that you own a home, that is worth $300,000 (or $500,000 or whatever) now. Lets say, that in the future it doubles in value (say $600,000 $1,000,000 or whatever) and you sell. Now, here's the best news;
for married couples the federal government charges NO taxes on $500,000 PROFIT !!!
So, you take the net sales price minus the price you paid and minus whatever improvements you paid for and (as a couple) you are allowed $500,000 profit - tax free !!! (for single people you are allowed $250,000 profit).
So, what really often happens is that the average person ends up making & saving a LOT more net money just from owning & selling their homes, than they do from working a job 5 days a week. Interesting, huh ???


I guess I got off on a tangent, but it's an important one, that I want you to realize. I didn't want to cover this at the open house, because I felt it was more important for you to focus on what the home offered. However, the application of the knowledge that I've covered here, can truly change your life.

The bottom line is, that I would love to help you find the home that is right for you and your wife. It will be my duty and my pleasure to help you. I enjoy helping people. Since I have a lot more experience than you in this regard, I can provide excellent help to you every step along the way and it doesn't cost you a cent to have me help you. Indeed, it is likely to help you save a LOT of money. My past clients and I have become good friends and if you like, I hope we will eventually do the same.

Now, I have three questions for you;

#1) Has anyone prePruepareporepreypurepyreperPRPrprPrenPrespeeprefpreppresprevOreorePERerePROPrupropryPRCPoepieDreareereirePr's-qualified you for a loan yet ?
This is a very important first step.
Please check with several loan officers and see what APR they are offering you.
This compares apples to apples.
Its not just the interest rate. The APR is the interest rate PLUS fees.

316 Views | 6 Comments



Comments


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JimNastics Kingston, New Jersey USA
Mon Mar 16, 2009 4:50 PM CST
(continued from above)

After you find the best APR, ask that loan officer to "lock you in" at that rate.
Get a confirmation in writing ! I've seen buyers end up at the closing table in tears, owing a lot more money, because they never locked in to the rate. Don't worry, there's no obligation on YOUR part. Indeed, if the rate goes down, you can lock into the lower rate.

Here are two people I trust a LOT, but call others too. I truly want what's best for you.

(here I give names & phone numbers of reputable lenders, that I have experience with)

#2) Do you have interest in owning (address of open house here) ?

If not,
#3) What are the particular criteria of the home which would be ideal for you and your wife ?
Please give me the details, so I can help find what best suits your needs & desires.

Thanks a bunch !!

Jim

and thanks to you CS members peace
claire3454 Pangea, Illinois USA
Mon Mar 16, 2009 6:15 PM CST
I feel it is a bit of an over-kill; too many platitudes will make you come across as phoney. I also feel it is too lenghty. They'll probably stop reading the letter after the 3rd paragraph. Could you be more concise?

I would skip the paragraph about renting is a waste of money. They know that, that's why they came to the open house.

Just stick to why this is a buyer's market.
How you can help making the buying process less complicated/easier.
Let them know you are available to answer any questions.

Take care
Claire
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GreenTassels Zürich, Zrich Switzerland
Tue Mar 17, 2009 2:07 PM CST
Well, since you asked for feedback:
You lost me when you wrote that you only send it to people you like... that makes you either a liar or a bad businessman. As a future home buyer I would want an agent who is able to work with any client, and who is honest.

also I agree it is quite long,- and in the current climate it is no way guaranteed that the house price will double in 10 years.. so I'd pick a different argument to get their attention,- like maybe more control over your living environment.., or the chance of profit,- rather than guaranteed loss if you rent..

Btw, I rent and happily so, bacause I like to move around.. but I am sure the people that came to your open day are already looking to buy,-they just want reassurance and a professional agent who is able to understand their needs/desires.

Which leads me to point out that it is nice of you to offer yourself to critique, it shows you are open to listening and incorporating others ideas! :-)

Just my 2cs worth,- I am not in real estate, nor a home buyer..
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JimNastics Kingston, New Jersey USA
Tue Mar 17, 2009 2:38 PM CST
I guess I am a "bad businessman". laugh

In reality I only work with people I like.
I neither need aggravation nor am I desperate for money. grin
claire3454 Pangea, Illinois USA
Tue Mar 17, 2009 4:57 PM CST
No, this is not a question of being a good or bad business man, you are entitled to work with whomever you wish.

Keep up the good work

C.
willuman Freedom&Peace, Noord-Holland Netherlands
Wed Mar 18, 2009 10:40 AM CST
Thanks Jim. I learned something about R.E. from your, "matter of fact" style!cheers
Profile Deleted
Wed Mar 18, 2009 11:15 AM CST
Make it shorter and more professional.

Most people's eyes glaze over after three paragraphs.

The question should be shorter and to the point, not folksy. Enough with the "we're going to be friends".







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