In Mendocino County along the Highway 101 corridor, the number of offers to buy homes went way up in June and July. When the housing market heats up like this, buyers can face stiff competition. The good news is that there are several steps buyers can take to make their offer more attractive.

     The first step is to get preapproved for a loan. This lets the seller know how much you, as a buyer, can afford and that you are serious about buying a house. Getting preapproved requires more effort than simply getting prequalified. Getting preapproved means working with a lender to go through the time-consuming process of demonstrating not only that you can afford the loan, but also that you’re likely to repay it. The preapproval process includes everything from verifying employment and submitting tax returns to confirming you have good credit and enough cash. Once you’re preapproved for a loan, all you have to do is find the property you want to buy and have it appraised. From the seller’s perspective, this reduces the chances of an escrow failing because of financing.

     The next best way to rise above the crowd of other potential buyers is to remove any unnecessary contingencies from your offer. If you like the built-in hutch but you can live without it, don’t make the sale contingent upon including the hutch. If you can be flexible on your move-in date, say so.

     Some buyers submit a letter to the seller explaining why they should be chosen above the others. Once you’ve made the best offer you can (the highest price you can afford with the fewest contingencies and the most flexibility), you can write a letter explaining how much you love the house.

     Here’s the catch: While it is legal to write this letter, and it is legal for your REALTOR to deliver the letter to the listing agent, and it is legal for that agent to share it with the seller; in most cases, the seller is not legally allowed to consider the letter. Why? Because the letter usually divulges information that could be used to discriminate against protected classes such as age, sex, disabilities, marital status, whether a family has children, and more.

     Some lawmakers have proposed laws to prevent these letters, but that infringes on free speech. A letter that does not reveal anything that opens the door to discrimination is fine: “I love your house. I love the décor. I would take great care of it just like you have.” However, the most compelling letters might say things like, “Our kids squealed in delight when they saw the swing set in the back yard, and my husband is an avid BBQ master who loved the outdoor kitchen.” You’ve just revealed information about age, marital status, and family status.

     If I were the listing agent, I’d recommend that my client avoid reading any buyer interest letters, because even if my client reads the letter and disregards the information, someone could still make the claim that the letter inappropriately influenced the decision to sell to one buyer over another.

     It’s best to have the buyer’s agent and seller’s agent communicate their clients’ needs and expectations. Once all potential buyers have made their best offers, it’s up to the seller to select the offer that best meets their needs.

     If you have questions about property management or real estate, please contact me at [email protected] or call (707) 462-4000. If you have an idea for a future column, share it with me and if I use it, I’ll send you a $25 gift certificate to Schat’s Bakery. To see previous articles, visit www.selzerrealty.com and click on “How’s the Market”.

     Dick Selzer is a real estate broker who has been in the business for more than 45 years.