Proof of Funds Required Prior to Showing...
As a Sarasota buyer agent, I have seen all the stops listing agents pull, sometimes at the request of the seller. In the Sarasota real estate market, I have found that the more difficult it is for me to show the property, the less likely it will sell. Or it will sell for less than a Sarasota home should have. The trick for sellers to understand is, the more buyers that are able to see the home, the more likely it will sell.
I've been showing quite a properties over the last few months recently ranging in price from $850,000 - $7.5M. I've been putting off showing a certain property because of something in the "Realtor Comments" section of the MLS. It states: "Proof of funds faxed over prior to showing."
Now, before you tell me I have to show my client every property, know I have discussed this issue with my client (at length). (We) have a few objections about having to "prove" my client can afford this home:
1. I am a Professional Realtor. I only work with clients capable of purchasing a home. As a Professional Realtor yourself, the simple question "is your client qualified to purchase this home?" should suffice.
2. I'm not a Tour Guide. I don't make it a habit of driving people all over incarnation on weekends and holidays just for kicks. If I'm taking them to see your clients house, our intent is to purchase (something).
3. Privacy - It's none of your gosh darned business who my client is or how much money they have in the bank. We live in an area chock full of celebrities and executives who make quite a bit of money. In fact, there's MULTIPLE companies here who cater to such clientele. Personally, I'm not comfortable sending someone's financial info to an office where I have no idea how the fax machine is set up (is it in the middle of the reception area? is it at someone's desk? what prying eyes can see this info?) or how it is stored or disposed of (is it filed for future reference? put into a data base? tossed in a trash can? shredded?)
4. Tough Times - We are in tough times, and tough times cause people to do things they may not normally do. Case in point, a few years ago, a high end Realtor here was caught stealing from a client's home. Again, I'm not comfortable sending my clients financial information somewhere I don't have control to its access.
5. My Client, MY Info - I work hard to find my clients. Until we want to write an offer on a property, the listing agent WILL NOT have access to my clients confidential information. Period.
6. Negotiation Strategy - How does it help my client to get a better deal on the house when you know they are worth 10x the amount? Again, it's none of your dagum business how much money my client has? All you need to know is I am bringing you a potential buyer.
6. Not a Standard Requirement - I understand wanting to make sure people are qualified to purchase, but requesting financial info is not a standard requirement in these parts. I see it rarely. We originally crossed this home off the list because of this requirement. Now 4 months later, we're only adding the house to the list now because choices are getting slim. How many buyers are skipping over your seller's home because they don't want to bother? If I can show my client a $7M house without faxing over funds, why is a (much, much, much) less expensive house requiring it?
Now, don't get me wrong. I understand there are agents out there who don't pre-qualify their clients. As a listing agent, it's your call - if you don't know the agent or aren't familiar with the company, then research that agent's sales. If they've never listed or sold a home in that price range, then consider requesting additional info. However, keep in mind, you may be missing out on showings because of your "proof of funds" requirement.
So, in your area, are proof of funds required or not?
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Victoria Stamps, MA, JD
www.Stamps-Realty.com
www.LeipersForkRealEstate.com615-512-5485 (cell)
615-595-1311 (office)
615-595-1312 (fax)
tori@stamps-realty.com
