It's the type of letter every homeowner wants.

Dear Mr. and Mrs. Miller:

We live in the local area and have a strange question for you: Would you be willing to sell us your home?

We are not real estate but we are interested in buying a ranch-style home. We are contacting several people with ranch homes who live on streets where we have good friends in the hope that you may be interested in selling. We currently live in a colonial home and, since we are now empty nesters, we are interested in a different style home.

Thank you for taking the time to read this and considering our request. We hope to hear from you soon.

So what do you think? A come-on for a no-money-down, let's make a powerful, dynamic win-win deal? Or a sincere letter?

My wife and I voted for sincerity.

As it happens we live in a community where homes typically have five, six, and seven bedrooms. Many of these nearby properties are two-story colonials -- homes with two levels plus a full and usable basement. The homes are nicely designed and finished, but as people get older they tend to prefer houses with fewer stairs or no stairs.

What to do?

Well, one response would be to graciously say "no thanks" to our correspondents. Given that the house serves us well and we like the community, that's the obvious choice.

Another option is to sell. But sell to the letter writer, or market the home generally? More buyers likely mean additional demand and thus higher prices. But then one has to look at the content of each offer. If the price and terms are right, a motivated buyer in hand is hard to ignore.

Because of the size and design of the home there are other options as well:

• One local house similar to ours is now used as a private retirement home. From the outside it looks like a house with no signs or modifications, a perfect fit for the neighborhood.

• Rent the property to a charity that operates group homes. More wear and tear, but a higher monthly revenue.

• Rent as a single-family home.

The truth is we appreciated the letter writers' interest -- but we like our house. The catch is that market demand can change. Maybe next year our home will be out-of-favor, but we don't think so.

Our property is not far from the regional subway system -- a great convenience. We're near major recreational facilities and our county has excellent schools. We're also near parks and woodlands, thus we have deer on the front lawn many mornings. And we like our neighbors.

Is there a real estate moral here? I'm not sure, but in thinking about our unsolicited offer a number of thoughts arose.

• It doesn't hurt for would-be buyers to ask. The letter writers were gracious in what they wrote and did not show up at our doorstep demanding to see the property, a situation which would have resulted in a flat no.

• Offers must be within the realm of reason. Discussions would quickly have ended upon the mention of such ideas as seller-financing, no-money-down, and "flexible" selling terms.

• Buy as though you're buying your last house. You don't know that you'll move again, so buy a property which can serve you well today and in the future.

• Buy a house which makes sense to you. We would probably prefer a smaller house, except that we have a home office. Local zoning allows for such office space without a permit or regulation as long as we meet a few basic standards: the property is not modified, there are no signs outside, we do not cause traffic and parking problems, etc.

• Remember Miller's First Law of Home Buying: Never buy a house you don't want to clean.

• The general rule, that "buyers prefer the least expensive home in the most expensive neighborhood they can afford," makes sense whether values are rising or falling.

• Location is hugely important. Always.

• Real estate transactions are complex. Had discussions gone further, you can bet that it would have involved a number of professionals on both sides.

So treat your neighbors nicely. You never know when one will have a friend who wants to buy your house.

For more articles by Peter G. Miller, please press here.

Published: May 10, 2001

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