Show me your money, Mr. Buyer!

by Sylvia Jonathan on April 25, 2014

home-equityShow me your money! That’s the listing agent’s mantra. Are you afraid of showing proof of funds when submitting an offer? When buyers write an offer to purchase a home, they must provide  things like an earnest money check, a lender pre-approval letter, and proof of funds. POF, or proof of funds, must be sufficient to cover the downpayment and closing costs. In the case of a cash purchase, the funds must be sufficient for the purchase price plus closing costs.

In the mind of some buyers, showing how much money they have translates into the seller wanting more money. Nothing could be further from the truth, at least with sane sellers (and why buy from an insane one?)

Mr. Buyer, you should be able to show enough funds to close on a deal at list price, unless the property is hilariously overpriced. You can absolutely negotiate for less money on a purchase, no matter how much more you have in the bank, and the discount depends on the market situation. A seller and buyer will strike at deal at market value. I have represented buyers who were able to show that they had ample means. Did they overpay on a property? Of course not!

Now comes the buyer who submits a lowball offer and shows he does not have the money to come up in price. What does the seller do? Well, most sellers I know will not waste their time negotiating with this buyer. The buyer loses right out of the gate. He and his agent wasted their time showing the property and writing the offer.

There is a difference between a savvy buyer who will not pay above market value on a property and one who can’t afford to buy a good property in the first place due to lack of funds.

Sounds like a cold world? Well, it is, because buying and selling a house is really business at the core.


Call Sylvia Jonathan, the guiding hand for sellers and buyers.


As your Buyer's Agent, I can help you find the perfect house for you, and as your Listing Agent, I'll get top dollar for your property. Call me, Irvine's real estate expert, at (714) 856-7003. I can help you make the decision that gets the outcome you want.

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