How important is the confidentiality of the buyers financial status when making an offer to purchase a property?

Asked by Beverly Howe, Naples, FL Thu Aug 23, 2012

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Beverly Howe, Agent, Naples, FL
Mon Oct 1, 2012
Only an exclusive buyer broker can guarantee the buyer financial confidentiality. Giving up their financial ability or motivation to buy could cost the buyer thousands of dollars!

“The most important thing a buyer can do is first of all work with a buyer broker.” As stated by AARP and the Consumer Federation of America from REALTOR® News.

There is no extra/hidden cost for you to obtain my Exclusive Buyer Broker services, other firms may have fees. In the State of Florida only a buyer broker can negotiate for the lowest price and best terms for the buyer. When you work with an Exclusive Buyer Broker, the brokerage firm does not list any homes, there is never a conflict of interest in your transaction. The State of Florida assumes that all buyers know all agents are transactions brokers who do not represent anyone one in the transaction and that the agents have very limited if any liability in the transaction. Unless, an agent or broker tells you they will represent you exclusively the agent is not required to disclose to you that they are a transaction agent or broker.

On my informative homepage http://www.FloridaBuyerBroker.com you will learn about:

The #1 Mistake Real Estate Buyers Make
21 Critical Mistakes Buyers Make
20 Things the Listing Agent Does Not Tell You about Short Sales
Short Sale Fraud
Foreclosures - the Wild West of Real Estate
Unrealistic Buyer Expectations
Buyer Beware
Chinese Drywall
Link to the REALTOR® data base system for Naples

A buyer broker is required to give the buyer loyalty, confidentiality, care and diligence, accounting, disclosure of all known pertinent facts and your financial status is protected.

I am well versed in both the Naples Board of REALTORS® contract and the Florida Association of REALTORS® contract.

I am licensed to sell real estate in Southwest Florida since 1981. That’s 31 years! I have worked as a buyer’s agent since 1993 and opened my own exclusive buyer broker firm in 1998.
I am friendly and easy to talk too.

When you are getting ready to make one of the most significant investments of your life, ask Beverly Howe first!

Beverly Howe, CIPS, ABR, GRI, TRC
Florida Buyer Broker
Owner – Exclusive Buyer Broker
1031 Exchange Specialist
Certified International Property Specialist
Accredited Buyer’s Representative
Graduate of the REALTOR® Institute
Transnational Referral Certification
Email: broker@floridabuyerbroker.com
Local Direct: 239-601-2013
Toll Free: 1-800-283-7393
Cell phone: 239-269-2766
0 votes
, ,
Thu Sep 27, 2012
Good evening,

Confidentiality is number one priority. I've been helping homebuyers for 23 years and I ALWAYS advise my clients not to reveal anything of their financial qualifications. And we mortgage professionals are not permitted to discuss anything of a confidential nature with outside persons.

Trevor Curran
NMLS #40140
0 votes
Kathy Bogan…, , Naples, FL
Thu Sep 27, 2012
Check with your broker; when I worked the Washington, DC market we always presented a buyer completed financial statement so the seller could make an informed dec ision....KathyBC 800-448-3411 ext 601 (9-27).
0 votes
Marisa McDou…, , Naples, FL
Wed Sep 26, 2012
As a licensed loan originator (new term for mortgage broker), we are not permitted
to disclose your credit scores, income, assets, etc... to the seller. We can provide
a "pre-qualification" letter stating that based on the informatio provided, you have
been pre qualified for a mortgage with "such and such" company.

Only a bank or lender can issue a "pre-approval" letter since they would be the
institution loaning the funds. Loan originators do not loan money. Lenders or banks
loan money.

It is a matter of different types of licenses in Florida.

In addition, it is important that you work with a reputable loan originator/company so that when
the "pre qualification" letter is issued, the seller is confident that the mortgage will be approved.

It is also important to keep in mind that you do not want to disclose the dollar amount that you have been approved for, since it will take away your neogiating power.

Feel free to contact (239) 260-1240 for a free, no obligation pre-qualifcation.
0 votes
Maria Cipoll…, Agent, Coral Springs, FL
Wed Aug 29, 2012
It is very important. I always work with the mortgage brokers that my buyers choose and suggest to have diferent pre approval letters with diferent amounts. That give them flexibility when we submitt the
offers.

For a cash transaction, is the same thing. Normally buyers have diferent accounts. We only need to submitt what they will need to cover the purchase price and closing cost.

Sincerely,

Maria Cipollone
Century 21
0 votes
Mary Horesco, Agent, Naples, FL
Thu Aug 23, 2012
The confidentiality of the buyer is not compromised when validating the ability to purchase a property. Verifying the ability to pay does not need to expose the net worth of a buyer.
For a financed transaction, all that is needed is a pre-approval letter from a financial institution which was already determined via debt/income ratio, and other information, which is confidential.

For a cash transaction, it is not uncommon to use one of several types of liquid accounts to cover the cost of the purchase. Or, to set up an account with funds to cover the purchase price.
Very simple.

I have had buyers for short sales show a bank statement with an amount way above the purchase price. It doesn't matter. The home price is approved based on current market value, not the buyer's financial status.

I always suggest to my buyers to seek legal and financial advice.
0 votes
Mary Horesco, Agent, Naples, FL
Thu Aug 23, 2012
The confidentiality of the buyer is not compromised when validating the ability to purchase a property. Verifying the ability to pay does not need to expose the net worth of a buyer.
For a financed transaction, all that is needed is a pre-approval letter from a financial institution which was already determined via debt/income ratio, and other information, which is confidential.

For a cash transaction, it is not uncommon to use one of several types of liquid accounts to cover the cost of the purchase. Or, to set up an account with funds to cover the purchase price.
Very simple.

I have had buyers for short sales show a bank statement with an amount way above the purchase price. It doesn't matter. The home price is approved based on current market value, not the buyer's financial status.

I always suggest to my buyers to seek legal and financial advice.
0 votes
Kathy Bogan…, , Naples, FL
Thu Aug 23, 2012
Great answers below....8/21
0 votes
Peggy Wagner-…, Agent, Bonita Springs, FL
Thu Aug 23, 2012
If you're representing them as a Single Agent, it is vitally important!
0 votes
Patrick Fiel…, Agent, Plano, TX
Thu Aug 23, 2012
I've heard this question from prospective buyers who fear that by submitting their pre-approval letter with an amount that is higher than the offer on a particular property compromises their negotiation leverage. I don't think the buyers financial status has a negative impact with regard to the amount of the offer.

The offer is most likely based on market value and local market conditions, so should the price of the home when pratical, well-advised sellers are involved. So a buyer's ability to pay more doesn't suggest a willingness to OVERpay.
0 votes
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