When we did this (during submission of offer) few years back, we just submitted the latest brokerage statements (of last month). That was enough.
who did you submit it to? The buyer who then knows how much money you have? Your agent who tells the other agent your good. The idea of my latest brokerage statement floating around bugs me.
We started looking last fall and never ran into this. Starting up for the spring season and the very first house we requested to see, our buyer's agent said they wanted the proof of funds or mortgage pre-approval first.
OP - Perhaps you should consider this requirement a way to limit the competition. After all some buyers won't have enough cash, nor pre-qualification, so they can't even look at the house.
Others will be turned off and refuse to show their stash amount.
So there will be less people interested in the house and you can low bid it.
I don’t understand. Is proof of funds for cash buyers in lieu of a statement from a lender? Are there realtors for both buyer and seller? If so it seems they should negotiate a compromise. I understand seller’s POV but shouldn’t a realtor limit showings to only qualified prospects. The variation of service provided by realtors can be huge.
... Regarding limiting showings to qualified buyers - how would you accomplish that? Require each and every person touring the property to have pre-approval or proof of funds? That is certainly a possibility, but at least with cash buyers, it may also keep away an otherwise qualified buyer...
That is what they do for high end homes. Here's one that's a few blocks from us. https://www.zillow.com/homedetails/1127-F-Ave-Coronado-CA-92118/17072988_zpid/ When we were selling a condo I asked our agent about it out of curiosity. He had toured it with the other agents in town, but there are no open houses and no lockbox. If you want to see it, your agent has to call the listing agent and make arrangements. We are definitely not qualified and also not looking to move, so I haven't been inside.
I got the impression that the listing agent would just trust the word of the buyer's agent that his client was qualified, but this is a small community of agents who all know each other and do deals together frequently.
After 5 years of full-time RVing, we are starting to look for a "sticks and bricks" home again. We intend to make a cash purchase. I expected to have to provide a Proof of Funds letter once an offer was accepted, but apparently sellers are starting to require one prior to allowing you to tour the house! There goes any bargaining power you had. It would be nice to be able to tailor the POF to each situation, but in order to do that, I think I would have to move $ in and out of bank account and personally visit the bank each time to get a letter in hand (otherwise they say 10-14 days, by mail only). The closest location is at least an hour away. Any tips for for how to avoid giving away too much info?
I remember a few years ago when we just started to look around for a retirement home a realtor would not allow us to see a condo without proof of funds. We would be cash buyers. I asked her how does she know we’d even want to buy the condo?
We never went back.
Buy a copy of Acrobat and "edit" the proof of funds letter and provide it to the seller. How would they ever know? Since the sellers are being dick-heads by requiring a letter to even see the house duping them on this dumb-a$$ requirement wouldn't bother me much.
I remember a few years ago when we just started to look around for a retirement home a realtor would not allow us to see a condo without proof of funds. We would be cash buyers. I asked her how does she know we’d even want to buy the condo?
We never went back.
It’s called fraud. Just saying….
Buy a copy of Acrobat and "edit" the proof of funds letter and provide it to the seller. How would they ever know? Since the sellers are being dick-heads by requiring a letter to even see the house duping them on this dumb-a$$ requirement wouldn't bother me much.
It’s called fraud. Just saying….
No fraud involved if the amount of funds available meet or exceed the amount specified in the letter.
Fraud consists of some deceitful practice or willful device, resorted to with intent to deprive another of his right, or in some manner to do him an injury.
Why would you look at houses if you don't already have or cannot borrow the money to buy one? It seems unnecessarily paranoid on the part of sellers to have such a requirement. As a potential buyer, if I see the seller is going to be a jerk about this, I assume they'll be a jerk about other things and would probably just walk rather than deal with them.
As a potential buyer, if I see the seller is going to be a jerk about this, I assume they'll be a jerk about other things and would probably just walk rather than deal with them.