Do I Need Proof of Funds (POF) in My Relocation?

I'm stepping back a little further.  I won't be working with a buyer unless they have shown me their ability to purchase.  And yes, to answer your question, relocation buyers should have their ability to purchase in place and documented.

Jeff, very good advice for cash buyer and buyers getting a loan.  It's really hard to convince people sometimes and how embarrassing for them when they find out they can't qualify for a year.  OOPS!

I have had people document with bank statements and with a quick letter from the banker. It really doesn't take much longer and it goes a long way in showing a seller that you are serious, especially in a multiple bid situation. 

Jeff, this is so true.   Had a relocation buyer from out of the Country here this week and will be paying cash, and had to have a conversation on how to provide proof of funds.

I would plan anothe 3 months ahead if it were me I think.

This is a really painful issue for me as a real estate agent. I don't understand why so many agents are sending offers without a proof of funds that the clients has money he/she claims to have( in RPA)? I just received a full price offer without POF. I was waiting for 3 days, they never sent me POF and just unformed me that they are withdrawing the offer. So weird!

An offer is only as good as the confidence a seller has that the buyer can really pay!

Beware of POF -- some investors can actually print there own online!  I presented an $11.0MM offer on a hotel with such a piece of paper.  when we called the company, they never heard of the buyer.  The attorneys for the seller heard of this online company and echoed it is worthless.  Not enough to receive...must verify further

I personally won't show homes to buyers if they are unable to provide POF after our initial buyer's consultation. This is especially true if they claim to be cash buyers.

Hi Jeff: This is the first time I think to stop by your blog. I saw it on Patricia's and saw you too with Ed Silva. Excellent advice. For a high-end homes, a fat account or good amount $$$ account is crucial.

I expect the funds to be liquid as well. If they're tied up in some "account" over seas we could (and most likely will) have problems, delays or worse, a cancelation. Funds from communistic countries, The Patriot Act, delays with couriers.. it can all be difficult. Then couple in the fact that many buyers don't realize how expensive it is to take out 3 or 4 hundred grand from their retirement account or worse, their 401k. Sigh. I need a beer. 

Jeff Dowler, this is a very popular blog article on Active Rain.

Jeff it is essential for a cash buyer. It should be with every offer but that doesn't happen here in South Georgia. Some owner/sellers as well as relocation and bank reo do require some form of loan approval or bank letter with the offer or within 24 after acceptance. It makes sense to show the sellers just how strong the offer is.

Jeff.  Another great post...This is something many agents question buyers about. It is best to have proof .. This is a subject I hear many agents complain about . Buyers need to show proof not only to the seller but to their agent that they have cash funds 

Jeff,

Excellent series for anyone considering relocating.  Having POF is important, here it has to be submitted with the offer.