Home Buying in 20906>Question Details

Zenobia, Home Buyer in 20906

Is it necessary to show my bank account balance in order to make an offer on a condo that I am prepared to pay cash for?

Asked by Zenobia, 20906 Sun Sep 11, 2011

It seems to me that if the condo owner knows that I can pay more than I am offering, he is more likely not to accept the offer (which is less than he is asking).

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Answers

8
If you do online banking, you can also just open a new account, deposit the amount you would like to show the seller and print a statement. It will take all of 15 minutes.
2 votes Thank Flag Link Sun Sep 11, 2011
The seller is just looking for confirmation that you actually have the funds you say you have. You can go to your bank and ask for a letter on their letterhead stating that you have the amount of the sales price in cash and have your agent present that to the seller.

Good luck!
1 vote Thank Flag Link Mon Sep 12, 2011
Zenobia,
The seller is concerned that you have "proof of funds.” If you have $1.00 more than necessary or $1,000,000. your offer is based on the value you place in their home, not poverty. You may obtain a letter from your bank confirming adequate funds to cover the offer, or supply a copy of a bank statement.
If you are very concerned about having too much on the statement, transfer funds to a separate account and use that statement. It's a small hassle, but will satisfy all concerns.
1 vote Thank Flag Link Sun Sep 11, 2011
The seller will want some confirmation that you have the means to purchase the home. Typically, buyers do this by providing a loan approval letter. In your case, since you are paying cash, you'll need to provide some other proof. Providing a bank statement is one way to do this. Another way would be to have your accountant, banker or financial adviser provide a letter stating that you have the funds to purchase the home.

Good luck with your purchase.
Web Reference: http://mocorealestate.com/
1 vote Thank Flag Link Sun Sep 11, 2011
I have encountered this dilemma with buyers before. Sellers have reasons--and sometimes not reasons--to ask for certain things from prospective buyers---a certain title company, a certain closing date, certain proofs of financial ability to purchase. I completely understand your reluctance to reveal such personal information. At the same time, the seller can ask for whatever he or she wants. They may not always get it. It may make certain buyers go away. As an agent I try to minimize whatever can cool a relationship or be an obstacle to one that could lead to a good buyer buying a good home and a good seller moving on to that next stage in their life. So I always ask the list agent to explain to me their reasons. Some are quite understandable. In the end, it is all about how motivated you are. You can always ask if there is another way to show your financial ability without showing your account statement. (See the other agent's well written comment below!) Good luck!
0 votes Thank Flag Link Tue Sep 13, 2011
Hi Zenobia,

In this situation it would be wise to get a letter from you banker saying that you have sufficient funds in your account to cover the offer price. After you come to an agreement they may want further proof of those funds but this letter should suffice for your offer.
0 votes Thank Flag Link Mon Sep 12, 2011
Dear Zenobia,
Your concern is valid. When a buyer makes an offer you must have a preapproval letter from a lender showing you have the funds to buy the home. The same applies for cash buyers. You will need what is known as "Proof of Funds" submitted with your offer. It can be from a bank account, 401k statement, investment statements and so on. An offer is never considered without either a mortgage company approval or proof of funds. I hope this helps. Good luck on the purchase.
Regards,
Ariana Loucas
0 votes Thank Flag Link Mon Sep 12, 2011
you can get a letter or statement from your bank stating you have the funds to close with the amount you're offering.
0 votes Thank Flag Link Sun Sep 11, 2011
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