Flipper/Rehabber · Savannah · Member since 2022 · 27 posts · 11 votes
I'm trying to buy a house to flip and it's very competitive. Its in very rough shape, and it's been on the market one day. I submitted my offer this morning and we were informed there were already multiple bids. I submitted a very strong offer I believe and a few hours later was asked to provide the listing agent with my proof of funds and to sign a financing contingency waiver. They've already updated the MLS to say to submit best and final (after I submitted my offer already) and they will pick one on Mon.
What I’m trying to figure out is, would my offer be the top one they’re considering since they’re asking me for those papers? Or do you think they’d be asking all offerors for those papers? I wouldn’t see the point in asking everyone, just the top offeror, right?
Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
3y
An offer without a POF pretty much means nothing to them, since they arent even sure you can buy it. I think you are probably in the running if your offer was strong but them asking for POF is not an indicator of their interest in your offer.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
You won't know unless the agent tells you, and most times they won't. Realtors will try to stir a bidding war and make you guess where to be at. Don't over pay for a property.
Real Estate Broker · Albuquerque, NM · Member since 2019 · 59 posts · 93 votes
3y
They might be asking for your proof of funds and waiver because another offer or offers included those documents with their offer, and they want to make sure that the other buyers with offers that they are considering are able to do the same thing, or that they don't waste their time if they accept an offer from a buyer who won't produce those documents, after they've turned the others away. Your offer is likely in the running, or they wouldn't ask. I just wouldn't count on it being "the one" because of that request. You can always ask the listing agent if they are authorized to disclose terms, and sometimes they are per their listing agreement, but nobody bothers to ask. You can also ask how many offers are being reviewed or received. If you are concerned another buyer might inch you out, and you really want it, you can probably add an escalation clause that bumps the price above the next highest offer, up to a certain price limit. Sometimes those help, but the listing agent needs to have a clear understanding of how they work.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
I would say you are probably in the mix.....but maybe lower in the mix already if you didn't supply a great POF letter with your offer. That tells me you aren't all that serious, experienced, or knowledgeable about getting the deal done. I'm not berating you, that's just how my mind works and my personal experience. #1 to me is I want someone who will close, close on time, not retrade, and is not BSing me on the proof of funds. I don't trust you, my seller doesn't trust you, I want proof....solid proof. So I don't want some chump letter printed off the internet somewhere, I want to see something strong like a Merrill Lynch or Fidelity account statement that shows me you have the cash. If you're making cash offer and closing in two weeks I also want significant earnest money.....$25,000 vs $1000....I mean you're going to pay $100 or $200K in 2 weeks anyway, why not just give me (title co/escrow co) most of it up front if you know you want the house.
If you are financing a flip (I'm guessing you are, because they're asking for financing contingency wavier) then you are probably at a disadvantage, even if you are the high offer. You'd better have a great cover letter, I'd have my lender call the selling agent. Hard money is tough right now. Not impossible, but lots of restrictions being implemented, lines of credit being withdrawn, less leverage, etc...so whatever you can do to make sure you can get a loan, get it closed on time, and then prove that to the seller can help.
If you have any proof you close and don't retrade that can help. I tell sellers up front, we may not be the top offer, and normally weren't not, but we close every deal in real CASH, not hard money, not go find the money, real in the bank CASH....and we don't retrade. I see tons of deals fall out because some people offer big money up front and then can't close on time or want retrade. Nobody likes closing extensions, nobody likes retrade, nobody like people who are going to try to assign or daisy chain it.
You may have a very detailed agent on the other side that wants to present and generate great offers for their seller or expects it to be competitive. Having a complete and accurate contract with all documents signed and delivered and reputable trades like title and lender support help make stronger offers.
Good luck out there.....it is tough....just lost one this week that was a real beater with 13 offers....still lots of cash floating around and looking for a home.
Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
3y
An offer without a POF pretty much means nothing to them, since they arent even sure you can buy it. I think you are probably in the running if your offer was strong but them asking for POF is not an indicator of their interest in your offer.
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