I have a client who is refusing to show proof of income as required by the Listing Agent to view a mutil-million dollar home.

Asked by labs, Las Vegas, NV Fri Jul 26, 2013

He is a well known client, but feels that his income should be kept under wraps. I see both sides client/listing agent. Any suggestions on what I can say to an Agent to allow a showing without meeting their/owners requirements of proof of assets/income?

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15
allan erps,A…, Agent, Pearl River, NY
Sat Jul 27, 2013
Why just not a pre-approval or letter of credit?
1 vote
allan erps,A…, Agent, Pearl River, NY
Tue Jul 30, 2013
What about a letter of credit from a Bank, Accountant or Business Manager stating his financial situation?
0 votes
Melissa Goss, , Center Moriches, NY
Mon Jul 29, 2013
Yes, perhaps a pre-approval letter will suffice?
0 votes
Barbara Gran…, Agent, Anaheim, CA
Mon Jul 29, 2013
Hi Labs,

A letter from your buyer's bank stating that he has funds on deposit sufficient to qualify and purchase the home should be sufficient.

Good luck to you. Sounds like you have your hands full.

Barbara Grandolfo
0 votes
Thomas Moser, Agent, East Northport, NY
Mon Jul 29, 2013
Sometimes the buyer would be more comfortable if his attorney provided it to the seller's attorney.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Mon Jul 29, 2013
This reminds me of a previous question submitted where 'PROOF Of FUNDS" did not have the buyer's name on it.
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In either situation, getting the front door open, on my watch, would not occur.
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The listing agent is simply stating, "Prove your buyer is not a jellybean!"
Both buyers seem to be.....JELLYBEANS!
.....at this moment.

best of success
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMakeEZ.us-
0 votes
Mack McCoy, Agent, Seattle, WA
Sun Jul 28, 2013
That's 'cause he's broke and he's hoping that some money comes in before the deal closes. Or maybe not. Who knows? We don't know, because he won't come up with a proof of funds!

What I would say to an agent is, "My client has not provided me with a proof of funds."

All the best,
0 votes
Judi Monday,…, Agent, Green Valley, AZ
Sun Jul 28, 2013
I find that a letter of credit from the Buyers financial institution will usually suffice in a situation like this--it can be as generic as needed to keep his income confidential but needs to be specific enough to open that multi-million dollar home.
0 votes
Gita Bantwal, Agent, Jamison, PA
Sat Jul 27, 2013
Many buyers that I work with do not like to disclose their income to others. When they have to provide financial information when writing the agreement of sale they write the minimum income that is needed to buy the house and same with assets that they show . They also provide a letter from the lender who prequalfied them. I think a letter from the bank should be sufficient.
0 votes
Gita Bantwal, Agent, Jamison, PA
Sat Jul 27, 2013
I agree with the comments by others about showing a letter from the financial institution. If the person has a job with a company known in the area may be a business card showing the job title can give a clue about income.
0 votes
Roland Vinya…, Agent, Sprakers, NY
Sat Jul 27, 2013
I can see that the buyer would see this as an insult - I would, and have in the past. Here's where the "art" comes in when making deals - finding a way to satisfy both parties.
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Sat Jul 27, 2013
Buyers who plan on paying cash should expect to show proof of sufficient funds (not proof of income.) When they refuse to do so then it's hard to take them seriously regardless of how well know they may think they are.

If their going to be using a mortgage then they should have a pre-approval letter stating that a full tri-merged credit report has been pulled and income and assets verified.

Listing agent may not clearly understand that they nor the sellers have any reason to require proof of income, what they need is evidence of either a potential buyers ability to secure a mortgage or evidence of sufficient funds which could be either a letter from the buyers banker, portfolio manager of one or two brokerage or bank statements. I believe the issue is essentially a semantic one and a calm reasoned discussion is what's needed.
0 votes
Bill Eckler, Agent, Venice, FL
Sat Jul 27, 2013
If you value having a good potential buyer with a positive reputation, I would consider working with them on this issue. This mandate does seem a bit intrusive......why not just ask them to go through the preapproval process or provide proof of funds. There's a big difference between these requests and "proof of income."

If I were the buyer, I'd seriously consider moving on to the next RE agency willing to work with me....one that has more reasonable expectations.

Just saying,

Bill
0 votes
Jill Murty, Agent, Mission Viejo, CA
Fri Jul 26, 2013
Alain's suggestion of a letter from the financial institution is a very good one. If the buyer has a private client services banker it might hold a little bit more weight.

If your client is a cash buyer, maybe he would be willing to show the minimum possible proof of funds to cover the amount at which the property is listed. I understand your client not wanting to show his income, but POF is often more palatable.

Hopefully, the listing agent will agree to accept either of these alternate ways of showing your client is able to purchase the home should he wish to do so.
0 votes
Alain Picard, Agent, Puyallup, WA
Fri Jul 26, 2013
You can try to explain to the Listing Agent but I don't think they are going to allow you to show the home without something. I would talk to the buyer and explain to him that this is normal for higher priced homes and try to get him to comply. Maybe just a letter from your clients financial institution saying something like "At this time my client does have sufficient funds to purchase a home in the amount of XXX dollars."
0 votes
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