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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."
Good morning Mike. I would imagine, if the agent was sure that the person was going to pay cash, otherwise never.
when they have a track record of successful deals or piles of cash.
If it is a cash offer, or if it is a repeat client and I know well the capacity of that well.
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.
Um, maybe when the new client is a seller? Otherwise, a pre-qual letter is a great idea.
When they are paying cash, but then they have to have a "Proof of funds" letter.
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.
cash buyer...but then you need proof of funds...
Im curious to see if any other pop up. The all cash buyer is the only one i can think of..
Sandy Padula and Norm...
If they showed me a bank statement with $$$$ in it and they were paying cash. It has happened quite a few times.
Sandy Padula and Norm...
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!
When all cash and then they need a current Proof of Funds.
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.
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?
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.