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Rainmaker
760,081
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The 'all cash' buyer is the one you must be most suspicious. To often they don't have a dime and using investor controlled funding to lock up real estate. For $2,500 I can turn ANYONE into an all cash buyer with real money up to 1.5 Million. However, the owner of the money must approve the deal. Now the real estate is tied up.

Now I do not seek a pre-qual from anyone, THEY ARE WORTHLESS.

However, business requires me to seek a PRE-APPROVAL.

I would not immediately seek a PRE-APPROVAL from one who was referred by someone on my top 10 list. Why? Because I must take extreme care to not offend the one who recommended me.

I would not immediately seek a PRE-APPROVAL from one who has special circumstances that such action would only aggravate the problem.

This does not mean I will be entering empty building with a stranger. They will still meet me at my office for 'THE TALK."

Jul 09, 2015 10:10 PM
Rainmaker
2,256,034
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Mike. I would imagine, if the agent was sure that the person was going to pay cash, otherwise never.

Jul 09, 2015 07:45 PM
Ambassador
4,212,800
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

when they have a track record of successful deals or piles of cash.

 

Jul 09, 2015 06:44 PM
Rainmaker
1,490,694
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

If it is a cash offer, or if  it is a repeat client and I know well the capacity of that well.

Jul 09, 2015 04:35 PM
Ambassador
2,863,819
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

It's rare that as a buyer's agent I actually ask for the letter, although I do tell buyers that it may be requried by seller/listing agent.  I sell second homes and buyers of second homes are generally well qualified to pay, prepared to put at least 20% down and many could pay cash even if they choose not to do so. And I generally have a very accurate read on people's ability based on conversation.

Jul 09, 2015 12:49 PM
Ambassador
3,676,945
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Um, maybe when the new client is a seller?  Otherwise, a pre-qual letter is a great idea.

Jul 09, 2015 12:25 PM
Rainmaker
1,675,376
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

When they are paying cash, but then they have to have a "Proof of funds" letter.

Jul 09, 2015 12:12 PM
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3,982,999
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Relocation clients that are referred from a relo company have already gone through a criteria and though I always get a prequal from them I don't have to have it right off the bat.

Jul 09, 2015 12:07 PM
Rainmaker
313,539
Cindy Davis
SD Home Source Realty - San Diego, CA

cash buyer...but then you need proof of funds...

Jul 09, 2015 11:39 AM
Rainer
230,518
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

Im curious to see if any other pop up. The all cash buyer is the only one i can think of..

Jul 09, 2015 11:18 AM
Rainer
21,860
Mike Sasse
OfferPad Home Loans, LLC - Scottsdale, AZ
Sales Leader

Noah Seidenberg - I can see that a PQ letter would not be necessary for a cash buyer, but reviewing the bank statement showing enough cash for the purchase is the same as a PQ letter in my book! Thanks for the reply!

Jul 09, 2015 11:14 AM
Ambassador
1,769,790
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

If they showed me a bank statement with $$$$ in it and they were paying cash. It has happened quite a few times.

Jul 09, 2015 11:12 AM
Rainer
6,567
Carrie Perry
ReBroker - Irvine, CA
I am a Real Estate Agent in California.

Never.

Jul 10, 2015 06:14 AM
Rainmaker
1,002,573
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

I can NEVER waste my time with them Mike. Anyone can get a pre-qualification letter, it's the pre-approval that gets my attention or a truckload of cash!

Jul 09, 2015 11:31 PM
Rainmaker
1,542,335
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

When all cash and then they need a current Proof of Funds.

Jul 09, 2015 11:29 PM
Rainmaker
698,877
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Pre-qual letters are merely a letter a banker writes based on what the customer tells them.  Not worth anything.  We do not accept them.

Jul 09, 2015 11:19 PM
Rainmaker
3,012,281
Richard Weeks
Dallas, TX
REALTOR®, Broker

If you require some buyer to and other not would that not be providing different levels of service which is a violation of the fair housing laws?

Jul 09, 2015 11:18 PM
Rainmaker
798,059
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Mike - It is pretty standard for all offers to require a pre-qualification letter. If you are working with the buyer, it is something you should have them get fairly soon in the process. I don't think there would be a reason not to require them to get pre-qualified, but even better pre-approved.

Of course, a cash buyer is completely different, just need proof of funds.

Jul 09, 2015 03:44 PM