921,504
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."
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Mike Sasse
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
2,538,739
Good morning Mike. I would imagine, if the agent was sure that the person was going to pay cash, otherwise never.
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Mike Sasse
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
6,663,864
when they have a track record of successful deals or piles of cash.
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Mike Sasse
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
1,646,772
If it is a cash offer, or if it is a repeat client and I know well the capacity of that well.
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Mike Sasse
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
3,210,995
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.
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Mike Sasse
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
3,763,935
Um, maybe when the new client is a seller? Otherwise, a pre-qual letter is a great idea.
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Mike Sasse
Scottsdale, AZ
-
Sandy Padula & Norm Pa...
, CA
1,683,918
When they are paying cash, but then they have to have a "Proof of funds" letter.
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Mike Sasse
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
3,988,138
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.
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Mike Sasse
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
443,220
cash buyer...but then you need proof of funds...
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Mike Sasse
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
231,279
Im curious to see if any other pop up. The all cash buyer is the only one i can think of..
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Sandy Padula & Norm Pa...
, CA
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Mike Sasse
Scottsdale, AZ
22,060
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!
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Sharon Altier
Elmhurst, IL
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Sandy Padula & Norm Pa...
, CA
1,772,017
If they showed me a bank statement with $$$$ in it and they were paying cash. It has happened quite a few times.
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Sandy Padula & Norm Pa...
, CA
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Mike Sasse
Scottsdale, AZ
6,617
1,153,799
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!
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Mike Sasse
Scottsdale, AZ
1,749,677
When all cash and then they need a current Proof of Funds.
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Mike Sasse
Scottsdale, AZ
699,277
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.
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Sandy Padula & Norm Pa...
, CA
5,096,636
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?
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Sandy Padula & Norm Pa...
, CA
979,796
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.
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Sandy Padula & Norm Pa...
, CA