Cash buyer

Vori

Hi,

So I've never bought a house, and I'm a cash buyer, so I'm still learning the ropes.

So I made an offer on a house, and then I was sadly outbid, but just before that happened, I was told that I'd have to show my bank accounts to the estate agent to proof I have the money. I appreciate this is necessary, but is there another way of doing this? As I suspect I may end up putting offers in on more than one place, and I don't fancy handing my bank account details to random estate agents everytime I put an offer in on a house.

Could I maybe use a solicitor to verify (of course I'll need one anyway, but I haven't arranged that, yet) that I have the money, and show my solicitor the bank account details, and then they in turn can verify to the estate agent that I have the money, either via phone, or in a letter, without having to actually show each estate agent my bank account details?

Thanks!

Sam_666

In writing to estate agent:
“Please confirm whether the seller has instructed you not to pass offers unless proof of funds is provided, and identify the specific evidence you require.”

eddddy

Vori said

…I don't fancy handing my bank account details to random estate agents everytime I put an offer in on a house.

Estate Agents don't normally ask to see bank statements when you make an offer.

They normally only ask to see bank statements etc once a seller has accepted your offer.

If necessary, maybe say to the estate agent that you will only provide bank statements once your offer is accepted

(And an estate agent might say that, even though your offer has been accepted, they won't 'officially' stop marketing the property until they've seen your bank statements etc - just in case you're a timewaster.)

Vori said

Could I maybe use a solicitor to verify (of course I'll need one anyway, but I haven't arranged that, yet) that I have the money, and show my solicitor the bank account details, and then they in turn can verify to the estate agent that I have the money, either via phone, or in a letter, without having to actually show each estate agent my bank account details?

A solicitor is unlikely to write a letter saying "I confirm that Mr/Ms Vori has £x in their bank account", until they had done thorough checks to make sure that is correct. (i.e. ID checks and possibly AML checks.)

That's likely to take the solicitor a while to do, and they'll probably charge a fee for it. I guess you could ask the solicitor to do the checks in advance, so they're ready to go.

But even then, if you ask a solicitor to send a letter, your request could easily sit in their in-box for a week before the letter is sent. Whereas you could show the estate agent your bank statement within hours.

The estate agent and seller might get a bit jumpy, if they've accepted your offer, but then have to wait a week or more to see your proof of funds.

bobster2

https://forums.moneysavingexpert.com/discussion/6683095/cash-buyer

When you say that you're a "cash buyer" do you mean that you have the entire amount needed to buy the property - i.e. you won't need a mortgage? The reason I ask is some people use the term "cash buyer" when they really just mean "chain free".

If you are really a cash buyer - the problem with showing them how much you have before your offer has been accepted is it weakens your negotiating position - e.g. if they see you have substantially more than you've offerred.

After your offer has been accepted - I think it's reasonable to show them a bank statement.

StewedApple

https://forums.moneysavingexpert.com/discussion/6683095/cash-buyer

You're right to be cautious about handing over data to people in this way - particular sensitive financial and personal data - doing so places you at risk if the information is lost or stolen from the estate agents - its loss could cause you irrevocable damage

You should discuss with your solicitor how this is managed, they are likely to need this information as some stage in any event, they can always advise estate agents of your financial status without disclosing sensitive data.

Keep_pedalling

Lots of people claim to be cash buyers, but few actually have the cash to buy outright. As a seller I would want proof that someone actually was before I would accept an offer.

FlorayG

I was cash buyer ( had sold a house I inherited, so money was in the bank) but I don't remember the estate agent asking for proof of funds. Mind you, he was the agent who sold for me so maybe he just assumed.

Anyway, you should only have to prove funds once your offer is accepted. Perhaps the last vendor had stipulated cash buyer only?

tetrarch

I was asked to prove I was a cash buyer. I actually provided the documentation and made an asking price + £10K offer before viewing

I sent a copy of my summary bank accounts, premium bonds summary holdings and ii ISA investment portfolio summary as PoF

"Cash Buyer" doesn't mean "I am holding cash" it means "I can readily get the cash". It means that I don't need a mortgage or have a property to sell

Regards

Tet

PeterE17

@Vori When I bought my house I also had to show my conveyancer how the money reached my account. I think it's called something like "proof of source of funds".

Someone savvy on the forum will tell us if that's still required - please folks, does it still happen?

Flugelhorn

https://forums.moneysavingexpert.com/discussion/comment/82134764#Comment_82134764

I was just asked for proof of funds when the offer was accepted

horsewithnoname

https://forums.moneysavingexpert.com/discussion/comment/82134799#Comment_82134799

it does. Part of the anti money laundering laws, which don’t stop actual money laundering, but can be a massive pain to ordinary folk.