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Proof of funds for cash Offer

I am a home buyer and thinking to make a cash offer. I have enough money in my bank account and have a statement of balance, but my agent says it is better to get a statement balance which is equal to the bidding price.  Suppose the listing price is $150,000 and I am bidding at $120,000. If my statement balance is $145,000, the seller may think I would pay more.

...OK, that is understandable. But isn't it time-consuming to get a statement every time I make an offer? It may take several days and costs a fee every time...

Please let me know if you have a good idea.
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May 04 2010 - US
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Answers (10)

Best Answer
Have your Agent add a clause to the sales contract that states buyer will provide proof of down payment with in 24 hrs. after sellers acceptance of offer or contract is null and void and deposit returned to buyer. ( or language Agent deems appropriate)
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May 04 2010
how the heck is the "best answer" one that doesn't answer the question??
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May 06 2010
Simply put the words, "Highest and Best" on the contract to show the seller that although you have more money, this is the most you will offer.  
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May 06 2010
In our area a seller won't even consider an offer without proof of funds.  As far as the listing agent seeing the balance of your account and thinking you'll pay more because you have it in the bank, that's insulting.  They don't know what other financial obligations you have for that money.  You should pay at or around the true market value (hopefully a little below) and that is that.  Do you think that Donald Trump is over charged for real estate because he's a billionaire?  You are right, getting a statement each time you make in offer is silly.  Adding special wording like another agent mentioned is just game playing, and can annoy the seller at best.  Make your offer based on the market value of the home and you'll be fine.

Best of luck,

Dreamtown
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May 06 2010
In my area my Buyers have never been asked for proof of funds. A healthy down payment answers a lot of questions.
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May 05 2010
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Enrique, Wayne and Roberto:

Thank you for your answers! I would consider Wayne's idea at first.
Since I also want to maximize my negociation power with a cash offer,
I would discuss details of a possbile clause with my agent.
If it does not work, then I would just use a current balance statement .
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May 04 2010
Roberto,
I did..... what is your reference?
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May 04 2010
wayne: it helps to read the question!
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May 04 2010
Don't worry about getting a separate one for each offer. If someone with a million dollars wants to buy a $200K home nobody is going to think they'll pay a million for it just because they have it!!!

If the seller counters you higher,, you can just ignore it till they come to their senses.
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May 04 2010
In my view, it is not necessary to have a statement balance which is equal to the bid. In fact if the balance is larger than the bid you appear as a very solid candidate.  The balance of many  investors cash buyers often far exceeds the bid yet they tend to argue the price down the most.

If necessary, your agent can easily explain that the excess balance is to cover new landscaping,  remodeling or similar new work.

As with any purchase, you should be ready to walk away from the purchase if the seller makes unreasonable demands.
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May 04 2010
 
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