We have a cash offer for you!

Real Estate Agent with Berkshire Hathaway HomeServices New England Properties Licensed in Connecticut

Litchfield County CT real estateThen show me the money! If you are going to put in a cash offer for a property, you will have to prove you have the money to back up the offer!

Here in Litchfield County, CT we do often see cash offers. I have heard some agents say they won't ask their clients for proof of funds. They say the client will get offended, will refuse, it is not necessary, etc. Me? I disagree with that train of thought. I don't know about anyone else, but I have no idea how much cash someone has available because of who they are, what they drive, how they dress. And if that same person is selling a home, they would want to know the person putting that cash offer on their house can put their money where their mouth is!

Cash offers can be great, the time from offer to close can be greatly shortened. There will be no surprises from a lender at the last minute. But because there are no lenders involved there is no third party to appraise the house. Great for the seller, some buyers might consider that risky. A buyer does have a right to put an appraisal contingency in the offer, if the house doesn't appraise they don't have to go through with the purchase. (Buyer pays for the appraisal.) If a buyer is comfortable with the offer price, they don't have to do that. I recommend to cash buyers that they have an appraisal done in most cases.

Cash offers often turn into mortgages without the seller, the agents, the attorneys knowing. That can be a big problem. If you are not in contract yet, you have changed the terms of the original agreed upon offer which means... you may have nothing. The seller accepted the offer based on one set of criteria, and now it is a whole different game. If you are now under contract it can be a real problem. Real estate contracts, by nature, are bilateral, having consent of both parties. Making unilateral changes just doesn't work.

So before you tell your agent to put in a cash offer on a house in Litchfield County, CT, get all your ducks in a row. Make sure that is what you really want to do. Back up the offer with the proof that you have the available funds! And if you are a seller, don't get all excited when someone waves cash in front of your face. I have learned, more often than not, things can certainly change, without warning.

Cash offers in real estate, they can and do work. As long as the buyer shows, up front, they have the available funds to purchase the property at the agreed upon price. And as long as the terms aren't changed mid stream by the buyer suddenly deciding they want to get a mortgage after all.

Posted by

Andrea Swiedler, Realtor, Southern Litchfield County Real Estate

2017 President, Greater New Milford Board of Realtors

2017 Connecticut Magazine 5 Star Realtor


 Search homes for sale in Litchfield County, CT.


Coldwell Banker Residential Brokerage

Litchfield County Regional Office,375 Danbury Rd, New Milford, CT 06776


© Andrea Swiedler 2009 - 2017

 Always do right. This will gratify some people and astonish the rest. - Mark Twain


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Hannah Williams 01/30/2012 03:39 AM
Home Buying
POSITIVE ATTITUDE for the Weary Soul
Connecticut Professionals
Diary of a Realtor
litchfield county
real estate
cash offers
proof of funds

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Winston Heverly
Winston Realty, Inc. - Atlantis, FL

Here in South Florida (Palm Beach County) all cash offers are accompanied by a statement showing proof of funds. A lot of the listings will have instructions as well. On REO deals we will not take a deposit, but in the AS-IS (10 page) contract once the bank accepts the offer the money needs to be wired within three days.

Jan 27, 2012 09:04 AM #1
Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Andrea-your really bring up some very good points, for instants if your a cash buyer do have an appraisal, and secondly if you agree in terms to a cash offer and than change to a financed purchased buyers do need to notify sellers of this and in most case have them approve of the changes in the contract. 

Jan 27, 2012 09:08 AM #2
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Winston, that form would take the pain out of the cash offer. We just don't have that here. Although a lender will insist on one for a foreclosure, that's for sure.

Adrian, cash is not always the end all, be all, is it! People don't realize that they can't change without telling everyone.

Jan 27, 2012 10:19 AM #3
J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY

Show me the money. Whatever perceived advantage or leverage a buyer thinks they will enjoy by being a cash buyer is neutralized by a refusal to show proof. 

Jan 27, 2012 10:23 AM #4
Sharon Lee
Sharon Lee's Virtual Assistance - Jonesborough, TN
Retired and loving life

I agree Andrea that I would need PROOF.

Jan 27, 2012 10:37 AM #5
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Hi Andrea, I definitely agree with you...if an agent brings me a cash offer ... I need proof that the funds are there.  Good post!

Jan 27, 2012 11:45 AM #6
Ellen Caruso
Daniel Gale Sotheby's International Realty - Glen Head, NY

Andrea, we do that here as well. My husband is often a cash buyer and investor, so I see it from both sides of the fence.

Jan 27, 2012 12:20 PM #7
Cynthia Larsen
Safe Haven Realty - Cotati, CA
Independent Broker Serving Sonoma County, CA

Andrea - this is also a great argument for potential FSBO's ... "are you willing to ask for the buyers financials? Let me do that!".

Jan 27, 2012 01:20 PM #8
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

In our secnd home/vacation home market we do not even asking the customers how they plan to pay. It is all very different

Jan 27, 2012 02:38 PM #9
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

Very astute observation, Andrea.  And, as Jon mentions above, every market is different.

Jan 29, 2012 01:07 AM #10
Wanda Kubat-Nerdin - Wanda Can!
PK Real Estate Utah South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Andrea, Part of qualifying a cash buyer is a proof of funds letter from the bank on letterhead and signed by a bank official. If someone refuses to provide proof then it may be a huge time waster for all involved.

Jan 29, 2012 03:39 AM #11
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Andrea  Yes proof of funds is so important ..it is the meat in a potato's offering

This is a great post


Jan 30, 2012 03:35 AM #12
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Andrea if a Buyer was offended by me asking him/her proof of the money, I would really begin to question whether they really had the money.  People generally only get offended when they can't prove what they are being asked for.

Feb 01, 2012 09:17 AM #13
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Andrea Swiedler

Realtor, Southern Litchfield County CT
Learn more about my powerful marketing program for your home!
Spam prevention

Additional Information