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BUSINESS
GilbertSunNews.com
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GILBERT SUN NEWS | OCTOBER 3, 2021
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Gilbert couple get home with ‘love letter’ BY ROB WINDER Cronkite News
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adia and Ernest Saco of Gilbert already had been searching for a new home before the pandemic hit, but after that, their quest became more urgent. “I was working from home all of a sudden,” said Ernest Saco, a senior product manager for a software company and a father of three. “And we have all five of us just on top of each other in this 1,500-square-foot house. I’m working out of our bedroom. And our kids are home because school’s out, but they’re also home because all the places they would normally go to for fun are closed.” “We were pretty desperate to get out,” Nadia Saco added. But as the Sacos’ search intensified, they found themselves competing for a shrinking pool of available homes. From April to July 2020, active listings in metro Phoenix declined by 42 percent, according to data from Realtor.com. So, to stand out among the bidders, the Sacos turned to a tactic that’s become increasingly common – and increasingly scrutinized – in the homebuying process: the love letter. In a letter delivered to the seller of the home they closed on in August 2020, Nadia Saco introduced their family, mentioned what her husband did for a living and detailed the “dreams” they had for the home. “I could picture the Christmas tree, where it would go and my kids coming down the stairs Christmas morning,” she said. A photo of the Saco family accompanied the letter. “Buyer love letters are a tactic used by some buyers in an attempt to stand out to a seller, especially in hot markets with low inventory and bidding wars,” the National Association of Realtors said.
This family photo of the Saco family was included in a letter they sent to the seller of the Gilbert home they now own. (Courtesy of Nadia Saco) ingly or through unconscious bias, as an unlawful basis for a seller’s decision to accept or reject an offer.” The federal Fair Housing Act prohibits discrimination against both homebuyers and renters based on race, color, national origin, sex, Ernest and Nadia Saco’s children enjoy their first meal at their new religion, home in Gilbert. To compete with others vying for the house, Nadia familial status or Saco wrote to the owner, introducing her family and sharing the disability. dreams they had for the home. (Courtesy of Nadia Saco) Even seemingly innocuous “Seemingly harmless, these letters actu- details can risk running afoul of fair ally raise fair housing concerns and could housing standards. open real estate professionals and their Describing children coming down clients to fair housing violations.” the stairs on Christmas morning, for “They often contain personal infor- instance, “not only reveals the potential mation and reveal characteristics of the buyer’s familial status, but also their relibuyer, such as race, religion, or familial gion, both of which are protected characstatus, which could then be used, know- teristics,” the Realtors association said.
To avert the potential for infractions, Oregon passed a law in June requiring sellers’ agents to “reject any communication other than customary documents in a real estate transaction, including photographs, provided by a buyer.” It’s the first state in the country to enact such legislation. Jay Young, executive director of the Southwest Fair Housing Council, said he doesn’t expect Arizona to follow suit anytime soon. “I think a law like that would not have a lot of chance of success in Arizona,” Young said. “I don’t think the political climate is such that the state Legislature would move to outlaw the practice.” However, the Fair Housing Act applies across the country. Young said sellers who violate that law by choosing a buyer based on “protected characteristics” risk facing a lawsuit. A complaint also could be filed with the federal government against the violator, which could result in monetary damages, he said. But so far, claims of discrimination in Arizona based on buyer love letters appear to be rare, if they happen at all. “I have personally not heard of any claims or lawsuits arising out of a buyer’s love letter to a seller,” said Michelle Lind, CEO of the Arizona Association of Realtors. And the extent to which these letters actually result in discrimination is unclear. “I think it’s one of those things that is really hard to prove,” Young said. Although the Sacos acknowledge the potential problems of letters like theirs, Ernest, who works part time as a Realtor, suggested love letters may stave off investors, who have been “snatching up” homes across the Valley.
see BUYER page 20