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

[oldman425]

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@sarge12 wrote:

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@Anonymous 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? 

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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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On the deal I'm working on now, we offered $4K over asking price and asked the seller to pay $4K of our closing.

[Anonymous]

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@sarge12 wrote:

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@Anonymous 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? 

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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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It depends on the housing market where you live. I am in the Denver, CO area and it is one of the hotest housing markets. You can't even be taken serious really unless your offer over asking price. It seems most offers are $8-10k minimum over asking price here, along with a letter and photo to the seller, and even offering to let the seller stay in the house 1-2months after the purchase so they can find a new place to live. It's pretty crazy!

[oldman425]

lol, our seller requested a month's rent back.  It's going to be odd being a landlord for a month.

[tacpoly]

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sarge12 wrote:
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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LOL. This has been the case in the SF Bay Area for at least 20 years. Other parts of the country are just catching up. In places like Seattle and Portland, the initial price spikes were driven by people from California. Then more tech companies followed, which brought an influx of a lot of highly paid workers.

Denver is in the early phase of this process. I'm unfamiliar with Denver geography but if land area and development aren't constrained, I would expect prices wouldn't reach the heights it has in SF (and Manhattan). And it also depends on the lasting draw of the place.

I've bought 3 residences in the two most expensive areas in the US and not once have I paid below asking. But then I got a over my asking price when I sold, so it worked out in the end.

Where I currently live, prices are running about $2000 to $3000 per sq.ft. although there are signs of softening. So Coloradans take heart, a lot of people have it worse than you. But I suggest that you buy as soon as you can afford to if you want to stay there.