How to Write Real Estate Letters to Distressed Sellers

Distressed homeowners are often in a highly emotional state. Thus, the real estate letters you send in hopes of getting their business have to be very different from letters you might send to non-distressed homeowners.

At this point, they’re not in a mood to trust you or anyone else. They’re feeling betrayed by the system, even if their own wrong choices are what led them into financial difficulties.

So your letters cannot be “hard sell.” Instead, they need to offer some reassurance that they are not “terrible people” and that they aren’t alone. I know, the news should tell them that they’re not alone, but they can still use the reminder. That helps ease the guilt and embarrassment.

Distressed homeowners do have a few choices, and only one of them involves hiring an agent to sell the home.

Consider the options available to homeowners who owe more than their home is worth in today’s market, and whose loan payments are now beyond their budget.

They can attempt a loan modification, they can sell quickly to an investor, they can simply walk away and let the lender repossess the home, or they can list as a “short sale.” Your real estate letter needs to explain the pros and cons of each choice.

Since you want to encourage listing with you as a short sale, you need to let them know what’s involved, and offer to assist rather than just ask for the listing. You can explain that you know the documentation they’ll need in order to qualify for a short sale and will help them make sure that they have everything needed to get a fast approval. (Or, in today’s atmosphere, a faster approval.)

You can also let them know that you have expertise in negotiating with the lender on their behalf. Remember, they’ve been hearing the horror stories, so they may believe that getting approval for a short sale is impossible.

If you’ve had success with short sales, get a testimonial or two to lend more credibility to your claims. If you’ve taken the certification class, offer up some of the points you learned. Remember, they don’t know you, so they need assurance that you can do the job.

What if they don’t need a short sale?

Realize also that not all distressed homeowners are upside down in their mortgages. Some don’t need a short sale, they just need a quick sale in order to avoid a credit-damaging foreclosure.

These homeowners should receive a similar real estate letter – but with reference to short sales eliminated. For this group you need to place all the emphasis on the importance of proper pricing, presentation, and marketing.

One is generally not enough, so plan on writing 4 to 7 letters to the same potential clients. Begin by writing down all the points you want to make, then put them in order of importance. After you decide how many letters you will send, divide those points up between the letters. The “choices” letter should, of course, come first.

How to Write Real Estate Letters to Distressed Sellers