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I gather from the statements the OP is using CASH to buy all or for the Most part of the property.
If the OP IS using CASH, they MUST show ability to buy {have the funds ON HAND} WITH their offer, just like you used your Pre-approval letter with your offers. And the AGENT WILL want to see they have the CASH on hand in the bank or they won't give you the time of day. NO Agent wants to waste valuable time and money for an offer where someone CAN'T PAY.
If ALL purchase is CASH, then, YES, you need to show agent/buyer WITH YOUR OFFER your ability to pay.
NO AGENT OR BUYER is going to take a CASH OFFER seriously without "knowing the funds are in the bank" and readily available. SO OP will have to show funds AND account numbers.
If the OP is securing financing, the LENDER will require OP to show proof of cash funds for Down payment and/or closing costs. That will be standing "behind" The OP's Approval Letter. And OP needs only show the approval letter. Along WITH the approval letter, unless it is for 100%, the OP will probably give cash "earnest money" in the form of a check to the Agent, AND since many have been stung by bounced checks, the AGENT MAY require proof via bank statement OR BANK CHECK for the Earnest money. Since a closing can be many days away, a personal check may be taken and cleared so they know it is good check.
Separate subject, but similar issue: I went to buy a new vehicle, they no longer take personal checks, must be a BANK CASHIER's check for the down payment if you finance through the dealer, OR pay cash in full. No more writing out a check without proof the check is good. Or you use a Credit card for the cash payment of the car, and most financing companies for them won't take a CC for a down payment, as you may not pay it off and then you are effectively financing 100% of the vehicle..
It's a case of "one bad apple spoiling the whole bunch" too many times.
If I was to sell my house, and an agent told me he had a cash buyer AND HADN'T VARIFIED THE "EXISTING CASH ON HAND", or he showed me the contract paying CASH, I, TOO, want to see the cash in the bank account and will only take a BANK check, even with proof via bank statement. Or I tell them to walk.
IF the OP finances, his finance company will take care of all they need to to varify the buyer's ability to buy, and give the OP the single page "PRE-APPROVAL" letter to go with the offer. THAT is NOT a CASH Purchase, though. The SELLER may receive it all in CASH, but that they get from the finance company and the OP's Earnest money, cleared through and from the AGENT's company.
And, lastly, we have to remember, different areas/counties/states may have different requirements than what ours may require. We can only provide GENERAL real estate rules. Some may require seller to pay closing costs, some the buyer to pay closing costs, some the are generally split between the seller and buyer. In our area, sellers and buyers can split the closing costs, but we had to pay all the closing costs, a burden we took on as the seller said they wouldn't pay half and would walk. Since we wanted the house and were getting it well below appraisal, we decided since we wanted it, we'd accept those terms. We had to provide BANK checks for the closing, no personal checks.
I wish the OP luck, whether CASH purchase or financed purchase. If the OP doesn't liek the agent's terms, the OP is certainly free to find another agent who will work with the OP's criteria, or the OP may find ALL agents require the same that was asked of the OP.
If the OP IS using CASH, they MUST show ability to buy {have the funds ON HAND} WITH their offer, just like you used your Pre-approval letter with your offers.
That's not necessarily true. I've made plenty of cash purchases without doing so. A sizable down payment made to the title company handling the closing--with no contingencies in the contract--alleviates most Sellers' concerns.
A lot of people missed the OP's point. It's about him getting a realtor, not about making an offer cash or otherwise to the seller's realtor. A buyer's realtor is not going to ask for proof of cash or your source of the cash. If you want to make an offer on all cash properties at that point the seller's agent will require proof of cash.
A lot of people missed the OP's point. It's about him getting a realtor, not about making an offer cash or otherwise to the seller's realtor. A buyer's realtor is not going to ask for proof of cash or your source of the cash. If you want to make an offer on all cash properties at that point the seller's agent will require proof of cash.
Yeah, it appears that people have grabbed hold of this and run off in all directions.
And I am amused by all the No agent/only a stupid agent/agent who won't be in business long would show someone a home without seeing all their finances on day one.
I guess I must have had an agent who is a unicorn as she did not request all our financials to show us homes. And she is a successful agent who has been in the business for over 10 years.
Location: Stuck on the East Coast, hoping to head West
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My agent never asked for proof of funds. Sellers haven't had their agents ask us either. When selling my house, I didn't ask for proof of funds. This hasn't been an issue for me.
A review for folks who have hijacked the thread with "showing houses" input:
As indicated in the thread starter, the OP wants to hire an agent.
"Showing houses?"
Key Jockey. Minimal responsibility in the Agent/Customer relationship.
Might be an unrepresented buyer, a dual agency situation, non-exclusive agency, or various other legitimate compromises on advocacy in the relationship.
"Hired?"
Fiduciary role. Agent/Client relationship. Commitment. Statutory compliance expected in the agent/client relationship and a deeper ethical deportment are clear implications of being "hired."
Included: Loyalty, Obedience, Accountability, Due diligence and Disclosure, and expectation of benefit of attained Skills.
"LOADS."
Yes, it is possible to hire an agent without showing any financial ability to buy. Just often it will not be a smart agent.
And, yes, many of us show some homes based on gut instinct of ability to buy, rather than a formal prequalification.
But, the OP is talking about concealing ability to buy from their hired agent, and apparently from the other side of the transaction, too.
If the OP is really serious about buying a house, they will present a preapproval letter from a reputable lender before too long, and definitely before getting serious, or requesting to write any offer.
That preapproval will cover the proposed purchase price, and will indicate the amount of down payment, and will be instrumental in proving ability to both the buyers' agent and the listing agent and seller.
Without that detail, the odds for success in the market are less than minimal.
If the market is moving quickly, it is ill-advised to attempt to play in the market without some proof of ability from a reputable third party.
Ill-advised for the OP, and ill-advised for an agent to waste time playing along.
Quote:
Originally Posted by pannierpacker
I am looking to hire a realtor to buy a home but I do not want to reveal to them how much cash I have and how much money I am looking to borrow. I only want to give them a dollar amount for what I'm 'approved' for. Is it possible to work this way with a realtor?
Historically, realtors have tried to push me to reach out to certain lenders. I think who I am borrowing from is none of their business and how much cash I'm spending is none of their business.
If realtors continue to try to get me to 'up my spending threshold' by finding different 'sources' or things like that, I may just have to find a way to buy a home where I don't have to interact with a realtor, because I'm getting sick of it.
The OP presents more than one issue in this post.
1. Concealment of ability to buy. Bad idea.
2. Feeling pressured to raise their price range to their maximum. That is a much more relevant and distressing issue.
Of course, if the OP is seeking champagne on a beer budget, it is only fair that the people she would hire should know that, too.
Last edited by MikeJaquish; 06-24-2017 at 05:06 AM..
I never mentioned the bank neither did the OP, they were talking about the RE Agent. To view a home it doesn't matter how much money you have or who you want to borrow from as long as you can show proof of being able to purchase.
I suspect if this was done in any other situation the lawsuits would be flying in regards to discrimination.
The opposite often happens with vehicles where buyers say they cannot afford it and the Dealership maps out a way to move the product.
Can you imagine a store saying you have to be able to afford to shop here before you can look???
Reminds me some of Jim Crow before civil rights where those of color had to prove they had the money prior to buying...
I know several that had to do this to buy cars and property in the South...
I gather from the statements the OP is using CASH to buy all or for the Most part of the property.
If the OP IS using CASH, they MUST show ability to buy {have the funds ON HAND} WITH their offer, just like you used your Pre-approval letter with your offers. And the AGENT WILL want to see they have the CASH on hand in the bank or they won't give you the time of day. NO Agent wants to waste valuable time and money for an offer where someone CAN'T PAY.
If ALL purchase is CASH, then, YES, you need to show agent/buyer WITH YOUR OFFER your ability to pay.
NO AGENT OR BUYER is going to take a CASH OFFER seriously without "knowing the funds are in the bank" and readily available. SO OP will have to show funds AND account numbers.
If the OP is securing financing, the LENDER will require OP to show proof of cash funds for Down payment and/or closing costs. That will be standing "behind" The OP's Approval Letter. And OP needs only show the approval letter. Along WITH the approval letter, unless it is for 100%, the OP will probably give cash "earnest money" in the form of a check to the Agent, AND since many have been stung by bounced checks, the AGENT MAY require proof via bank statement OR BANK CHECK for the Earnest money. Since a closing can be many days away, a personal check may be taken and cleared so they know it is good check.
Separate subject, but similar issue: I went to buy a new vehicle, they no longer take personal checks, must be a BANK CASHIER's check for the down payment if you finance through the dealer, OR pay cash in full. No more writing out a check without proof the check is good. Or you use a Credit card for the cash payment of the car, and most financing companies for them won't take a CC for a down payment, as you may not pay it off and then you are effectively financing 100% of the vehicle..
It's a case of "one bad apple spoiling the whole bunch" too many times.
If I was to sell my house, and an agent told me he had a cash buyer AND HADN'T VARIFIED THE "EXISTING CASH ON HAND", or he showed me the contract paying CASH, I, TOO, want to see the cash in the bank account and will only take a BANK check, even with proof via bank statement. Or I tell them to walk.
IF the OP finances, his finance company will take care of all they need to to varify the buyer's ability to buy, and give the OP the single page "PRE-APPROVAL" letter to go with the offer. THAT is NOT a CASH Purchase, though. The SELLER may receive it all in CASH, but that they get from the finance company and the OP's Earnest money, cleared through and from the AGENT's company.
And, lastly, we have to remember, different areas/counties/states may have different requirements than what ours may require. We can only provide GENERAL real estate rules. Some may require seller to pay closing costs, some the buyer to pay closing costs, some the are generally split between the seller and buyer. In our area, sellers and buyers can split the closing costs, but we had to pay all the closing costs, a burden we took on as the seller said they wouldn't pay half and would walk. Since we wanted the house and were getting it well below appraisal, we decided since we wanted it, we'd accept those terms. We had to provide BANK checks for the closing, no personal checks.
I wish the OP luck, whether CASH purchase or financed purchase. If the OP doesn't liek the agent's terms, the OP is certainly free to find another agent who will work with the OP's criteria, or the OP may find ALL agents require the same that was asked of the OP.
The last 2 Dealership purchases were paid for in full by personal check... no problem and one was on a Friday night.
That Dealer did ask permission to run a credit check since it was after hours and I said no problem... then he came back and REALLY wanted to finance and I said I never finance a vehicle and wrote the check.
I think you would have more problem coming in with load of cash than a check...
It's very common for expensive purchases, to qualify buyers so no one is wasting time with tire kickers.
If you look at a used boat these days, particularly the big ones, they will not start the engines until you have made an offer, backed with proof of funds and a deposit. They don't want to waste time giving boat rides to tourists. Real estate isn't that bad, we will at least let you in the door before you commit.
It's very common for expensive purchases, to qualify buyers so no one is wasting time with tire kickers.
If you look at a used boat these days, particularly the big ones, they will not start the engines until you have made an offer, backed with proof of funds and a deposit. They don't want to waste time giving boat rides to tourists. Real estate isn't that bad, we will at least let you in the door before you commit.
As mentioned... I can see this practice providing low hanging fruit for eager discrimination lawyers...
I manage rental property and NEVER require a credit check or proof of funds to look...
Maybe I've been around too long... when I was starting out the deposit put up with the offer is what qualified a buyer... I still remember a few that lost Earnest Money for failing to complete the sale...
Last edited by Ultrarunner; 06-24-2017 at 02:14 PM..
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