Before presenting an offer, no. Present it as a whole. If there are multiple offers that are similar, more than likely the seller will select someone who is putting down more money. At the end of the day, if it's a solid pre-approval from a reputable lenders, not sure why the concern. Right now, I'm working with someone who's pre-approved solidly for up to $800K... not how much he wants to spend, but he's eligible for a VA loan and that requires no money down for the first $450,000 or so.

He needs to keep his opinions to himself and present the damn offer.

Present the offer to the seller. Present ALL offers.

I think that comment shows a bias on the part of the agent. If they went to a reputable LO then 3% or 5% or 35% is ok with me. There are agents in my area that are always bias against VA or FHA & I personally find it discriminating.

     What Nina Hollander said.

That should not be a major concern if they have financing in place.

The more info to support the strength of the offer the better.

If the buyer is well-qualified and this has been verified the offer should be presented.

I stack the offers ranking from Highest in Price and then Highest and best on terms based upon what I know the seller is looking for.  If I have concerns about any buyer's financing, they are asked to be vetted with my preferred lender.  People who have nothing to hide ... hide nothing.  If they want the home, and being vetted with another lender is what it will take to help get them the home ... then they would be wise to do so. 

In my market ... the vetting is done prior to presenting offers to the sellers. 

Offers should be presented as written. Only when asked, should the Agent give their honest and unbiased guidance, but should not lead with their opinons in the presentation of the offer.

If the offer is accompanied by a pre-approval letter from a reputable lender, present the damn thing!

You cannot control the feeling, thoughts, preconceptions, biases, or reactions of the listing agent (or anyone else for that matter). A small down payment is not as attractive as a large down payment. It is what it is. The buyer is qualified/approved and a seller may be well advised to accept the offer rather than hold out for a better offer that may not materialize. If your offer is the only offer that is on the table, the seller and agent need to take it seriously and discuss it intelligently.

Praful,

Nina Hollander gave you a wonderful answer.  

A

Present and remind seller that all terms are negotiable. 

I discuss all details of an offer -- pro and con -- and offer my professional advice -- but ultimately the Seller is in the Drivers Seat -- they choose after thoughtful consideration of all terms and details ...

Yes, I do concern myself with ALL the financial numbers on the contract.  Less money down means more loan to qualify for, which means more risk of not appraising.

In our area, if there are multiple offers, then, yes, the amount of down payment is definitely a concern in case there are appraisal issues.  We are in a market where many times prices do sell over appraisal price and no one blinks an eye.  However, if there is only one offer and they are only putting 5% down, it's fine, provided they are solidly approved, which is why we call the lender and get as much info as we can about their credit worthiness.  The amount of earnest money is also important. 

In our area we do not deposit the buyers Earnest Deposit until we have an executed deal (so a photo copy of the check is fine with the initial offer).

I would always be concerned with a minimal down payment....

I would deliver the offer immediately, and then I would retrieve additional information about the qualifications of the buyer.... job security and job description.... the seller and I would then discuss it and respond.

Proof of funds, pre-approval and verification are not negotiable but required

well I guess it depends on if I have more than one offer.  I have told agents to make sure their client is bringing their strongest offer when I know my seller will be making a decision among offers.

It is not a major concern at the offer stage. I am more worried about the preapproval not meeting the math of the loan amount and downpayment. 

Nope. It's the sellers concern to raise.

I represent 5% and 3.5% downs all the time.

I wouldn't think she should be concerned before the offer has been presented. She should be concerned if the offer is weak all the way around.

I am more concerned witht he lender.

Lst year 3 people used  quicken loans and all three closed late.

When I listed I paid more attention to what type of loan program they were using.

Depends - I will often submit an offer without an EMD but will have the EMD immediately upon acceptance

On the flip side in California Praful Thakkar there is a shortage of product or houses on the market to they get bid up over asking price and over what they can reasonably appraise, therefore here a seller will look for buyers who can come up with extra cash

Praful Thakkar I would not be concerned about the buyer's downpayment. If they qualify for their loan it isn't an issue. However, I would be concerned about their EMD. I want it to be as large as possible to protect my seller should the buyer default.

You bet I would be concerned. We know what 'No skin in the game' resulted in not too long ago.

Insufficient down payment could mean weak buyer which means SELLER WILL BE HARMED.  The buyer agent should know this and should EXPECT a 'bump it up to 20% counter. (VA of course is an exception. If this is a convenience not a necessity.)

Now there is also the situation where a unique property has no comparable sales.  The listing agent ALREADY knows this.  A down payment is the secret sauce that makes the deal work or the seller is harmed.

Be aware, the right action is directly related to which client you represent.  No skin is a victory for the buyer and the buyers agent.  Seller can expect to make more concessions as negotiation progress.

Like Nina, when buyers with little down payment are up against other offers with 20%+, there is a good chance they may not win the bid, if the rest of the offer is similar.

5% is not bad; don't unerstand the concern here. 

Only if the listing stipulated the Seller wanted a higher amount...

I would not say concerned.  I evaluate the offer and then give my seller my advise an opinion.

Absolutely not.

It may be a concern if he thinks the appraisal may be an issue.

Concerned?  Not if the preapproval was from a reputable lender.  Noteworthy? Sure - especially if in multiple offers.  I see a lot of "mature" sellers negatively look at 5% down offers... Times they have a-changed! 

Yes. But what's important is whether the buyer can successfully obtain a mortgage, not how much cash they can put down.

No.

Well, of course, the more down, the stronger the offer and easier to deal with an appraiser. Maybe it is about an appraiser? Does she has any better offers? Her job is to present it. In my hood, a seller can ask for a complementary( no obligation) pre-approve with a lender of their choice just to make sure. 

I would request proof of funds...