Cash buyer

UnsureAboutthis

We were asked for evidence re the cash we had years ago with an estate agent new to us

If the EA does not do that, they are wasting their time and the seller's time, as many people around claim to have the cash ready, but its total BS

So, yes, a good, sensible EA will do that regarldess of what some others have said here; it makes sense.

UnsureAboutthis

https://forums.moneysavingexpert.com/discussion/comment/82134796#Comment_82134796

Sorry I skimmed through posts and I just posted similar experience - its common sense unless people want to waste time

With us on anoter place we bought over 30 years ago - the iditos and the solictors never told us that the house we were buying has the sellers daughters name on deeds and they could not get hold of her up until a day before the agreed exchange of contracts. Therefore, people do not disclose the full facts and many jokers can claim they have money. One incredible memory of claiming to have money was someone who worked with me and was claiming he had 100k in cash but then went on "when his elerdly grand ma dies" she was 90+ and IIRC did not pass away for a few years after that.

clairec666

I recently bought in cash, and only had to provide proof of funds to the solicitor, not the EA. I think the EA made a judgement call based on meeting myself and another family member when we first viewed the property, where we had a casual conversation on the source of funds (family inheritance). In hindsight though I'm surprised I didn't have to provide any evidence as it sounds like (from this forum anyway) a lot of people lie about being a cash buyer, or change their minds part way through the purchase.

Albermarle

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

The conveyancers are getting more strict about this, but some are ‘worse’ than others. They all have to follow money laundering rules, but there is some variation how strictly they are applied.

The estate agent is not controlled so closely, but they are also on the lookout for bidders/ offerers whose finances are not what they claim.

OldScientist

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

Our (very) limited recent experience may indicate that 'it depends' on circumstances and EA

The house we offered on had been up for sale for a while and, AFAIK, had no other offers. We provided proof of funds after our offer was accepted. It was only after we satisfied both ID and proof of funds checks that the house was taken off the market.

The house we sold generated significant interest (double figure viewings in the first week) and multiple offers (not quite double figures). After consultation with us, the EA went to a 'sealed final bid' arrangement with a deadline that required ID checks and proof of funds to be provided before offers would be passed to us for consideration. This meant that we knew all offers were from serious buyers and avoided having to revisit the list a few days down the line.

That you were outbid, suggests that there were other offers and that the EA may have had something similar in place. Where there is less interest, they may be happy to see your documentation after your provisional offer is accepted.

user1977

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.

Only if it's a rather odd type of negotiation where the buyer claims their highest offer also happens to match the balance of their bank account. In practice people are negotiating on what they believe the property is worth, nobody is expecting buyers to be penniless after completion.

Herzlos

You may need to convince an EA that the offer is proceedable before making it to avoid wasting their time.

Though you should be able to do that by showing them your banking app in person with the account summaries, rather than providing bank statements. What each EA will require will depend on the EA and client, though.

Bigphil1474

EA's just need to know you aren't a time waster. Normally someone is just selling and buying a house, so a simple MiP and your house being up for sale is enough. Maybe focus your search on one EA's site if you don't want to keep proving you have the money.

BungalowBel

We also had to show how the money had gotten to the account. It was from an inheritance, and I had spent some and moved the rest around into different bank accounts. I showed them the solicitors's letter saying I had received the inheritance and the account with the asking price in (which was less than the inheritance). I think they were satisfied with that but it was over ten years ago so I might have forgotten a step.

lfc321

As a cash buyer you should expect to get some benefit over potential buyers who need a mortgage (maybe being selected by the vendor over other comparable offers; maybe a slight discount). Given that, it doesn't seem unreasonable to me that the estate agent tries to establish that you really do have the funds before the vendor makes a decision. It is unfortunately common for people to claim to be cash buyers at the start, only to later in the process reveal they need a mortgage or have a house to sell.

If you are able to physically go into the estate agents with paper copies of the relevant statements and show them to them, but not leave them, the risks seem very small to me. That should be enough for the agent to establish you are indeed a cash buyer.

As others have said already, the amount in your account shouldn't weaken your negotiating position: the negotiation is about what the house is worth.

As the process moves on, you will later have to do money laundering checks with your solicitor. That's an entirely separate process.