Active Rain May 26, 2009

Cash Buyers Must Show Proof of Funds to be Taken Seriously

“We’ll be paying in cash.” “We won’t require a mortgage. We have the funds.”

The perception that cash buyers are afforded courtesies, discounts and red carpet treatment has caused some out there to represent themselves as such. The only problem is that they are not cash buyers. Some are just confident that they can get a mortgage, and a few are flat out scammers. Moreover, all cash buyers in this economy seldom have the sort of advantage that some think they have. Cash breaks a tie or overcomes perhaps a 1% difference in price in my experience selling Westchester County Real Estate, but that is about it. Anything to the contrary is anecdotal and not something I can model my brokerage practice on.

I know cash buyers. I have worked with one in particlular since 1996 and dozens of others as both investors and owner occupants. I know the rules of engagement in this industry and what constitutes good faith. The one thing that all cash buyers have demonstrated since day one has been the ability and willingness to furnish proof of funds. I don’t need to see it either; so long as the seller’s attorney is satisfied, so am I.

What I will not do is jump through hoops for someone claiming to be a cash buyer who gets cute about verifying their funds, who among their party actually has the money, who their attorney is, or diverts from the common practice of good faith. Mystery and real estate don’t mix. In our local market, offers are submitted with basic information on the buyer, their pre-approval or proof of funds, and attorney contact information. If a buyer is unwilling to conform to those basic points, they are acting suspiciously. It costs nothing to go over to Staples and photocopy a bank statement or print something up online.

In God We Trust. All other are required to show proof of funds before we start bending over backwards.

Search the MLS like an agent here. New York’s Premier Short Sale REALTOR. Read my short sale bog here. See the New York Photo blog here. J. Philip Serves Briarcliff Manor, Ossining, the River Towns, Westchester County, and the bedroom counties of New York City.