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Seller's agent is asking for proof of funds for closing

New Contributor

Seller's agent is asking for proof of funds for closing

The house is listed for 199K and I offered 204K + 3% closing help. Apparently there's multiple offers. The seller's agent is asking for proof of funds for closing. Why do they need to check the funds? I do have enough to cover the diference of closing costs. Is that an sign they will not accept my offer? 

 

 

 

Message 1 of 14
13 REPLIES
Valued Contributor

Re: Seller's agent is asking for proof of funds for closing

Maybe they are interested in your offer and want to make sure you can cover your end....speculation...Smiley Happy

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Message 2 of 14
Super Contributor

Re: Seller's agent is asking for proof of funds for closing


doinit1 wrote:

Maybe they are interested in your offer and want to make sure you can cover your end....speculation...Smiley Happy


or maybe they want to see how much money you have before they counter?

 

Retired Lender
Message 3 of 14
Frequent Contributor

Re: Seller's agent is asking for proof of funds for closing


luckystar10 wrote:

The house is listed for 199K and I offered 204K + 3% closing help. Apparently there's multiple offers. The seller's agent is asking for proof of funds for closing. Why do they need to check the funds? I do have enough to cover the diference of closing costs. Is that an sign they will not accept my offer? 

 

 

 


Perhaps seller does not think it'll appraise for that much and wants to ensure you have the funds to cover the shortage.

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Message 4 of 14
Frequent Contributor

Re: Seller's agent is asking for proof of funds for closing

What is your agent saying?  Seller agent is looking for the best deal for her client.  Have you looked at Zillow or Redfin to see what they estimate the appraise value of the home in question is?  Like what was said before, there might be a chance the home won't appraise for the amount of your offer.

12/27/16 - Eq683 TU666 Ex681 04/05/17 Eq742 TU763 Ex757
Message 5 of 14
Valued Contributor

Re: Seller's agent is asking for proof of funds for closing

1) Zillow values are trash They are AVM values 1b) Redfin is not worth anything either.  If you believe them I can sell you several houses for Zillow values  and retire very very rich and you bk.   2) Have your broker do a CMA/BPO  3) POF can either mean multiple offers or they like your offer.  4) Many sellers do not want to go under contract with some one who can't close.  I have flipped over 100 houses. On all our "buys" we submit POF and we require preapproval for loan and POF for the down payments when we sell . At  least one deal a year I have somebody say I have the cash and want to buy and then not be able to come up with the POF.  In many markets today the inventory is very weak and hard to get comps. ALSo, have the POF show just the amount needed in the offer not a dime more.  

Message 6 of 14
New Contributor

Re: Seller's agent is asking for proof of funds for closing

Thank you all for your help!

 

Seller will decide tomorrow. So nervous 

Message 7 of 14
Moderator

Re: Seller's agent is asking for proof of funds for closing


Backwoods wrote:

1) Zillow values are trash They are AVM values 1b) Redfin is not worth anything either.  If you believe them I can sell you several houses for Zillow values  and retire very very rich and you bk.   2) Have your broker do a CMA/BPO  3) POF can either mean multiple offers or they like your offer.  4) Many sellers do not want to go under contract with some one who can't close.  I have flipped over 100 houses. On all our "buys" we submit POF and we require preapproval for loan and POF for the down payments when we sell . At  least one deal a year I have somebody say I have the cash and want to buy and then not be able to come up with the POF.  In many markets today the inventory is very weak and hard to get comps. ALSo, have the POF show just the amount needed in the offer not a dime more.  


^^^Exactly right.  Couldn't have said it better. 

Message 8 of 14
Valued Contributor

Re: Seller's agent is asking for proof of funds for closing


luckystar10 wrote:

The house is listed for 199K and I offered 204K + 3% closing help. Apparently there's multiple offers. The seller's agent is asking for proof of funds for closing. Why do they need to check the funds? I do have enough to cover the diference of closing costs. Is that an sign they will not accept my offer? 

 

 

 


This has me confused. Are people actually offering over the listed price for houses now?  If so, is this a common thing now? I thought list price was where you begin negotiations and then you make offers for less, and then usually meet somewhere in between.




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Message 9 of 14
Valued Contributor

Re: Seller's agent is asking for proof of funds for closing

Sarge, in many markets today list price is just the starting price. I have under contract now that got 21 offers in the first 7 days . If house in my market is even close to what  you want you have to make an offer because there is simply nothing out there/   If the buyer asks for anything I can move  on to another one that won't   Trying to value these things in this market is very hard.  Alot of what you see being sold now built for contract at unreal prices.  This is a seller market

Message 10 of 14