Proof of Funds Bidding

Dancork7

Few weeks ago we were in a bidding war on a property from the start, at the tail end agent stopped engaging on our final bids as we wouldn’t show our Bank statements.

my solicitor on reviewing our bank statements issued a letter confirming availability of funds to agent to support our bids and AIB provided the same even outlining >10% of funds in cash.

Agent pushed me for the ratio of debt to cash and wanted all my statements which I refused to give as wasn’t tipping my hand as bidding was already 20% over asking. It would also depend on final price the ratio we would go debt to cash as house needed work.

Appreciate agent was trying to de-risk the sale for their seller and we were up against an alleged cash buyer who came right in at the very end. So seller always likely to go with them if cash.

However is that behaviour typical not to engage us when we have proved our funds?

Aph2016

Estate agents can do their due diligence without asking you for bank statements. They sound like complete clowns.

herbalplants

https://www.boards.ie/discussion/2058305166/proof-of-funds-bidding

Absolutely madness. Not a typical behaviour. I personally wouldn't be comfortable to show my absolute maximum as that would depend on the type of house. Also if the estate knows fully your figures, he can create a bidding war to extract more out of you.

Did you ask him for proof of the other bidder?? The cash bidder, how do you know he was still bidding??

ingo1984

Estate agents are essentially del boy in a suit.

PommieBast

https://www.boards.ie/discussion/comment/120855648#Comment_120855648

In short you don't even know if that other bidder even exists. But that is how screwed up the system is.

It seems to be standard practice, happened to us. We had the same concerns but didn't make a fuss in the end and all was OK.

Dancork7

https://www.boards.ie/discussion/comment/120855648#Comment_120855648

My thoughts exactly.

Basically got a PFO email from the agent late on a Friday saying cash bids in for 20k and 40k above your bid. No asking us are we going to counter or still interested in property and no further contact the following week. We called it then, agent clearly didn’t want our money.

Captain Flaps

We bought in 2018 but at the point where we began bidding our mortgage broker emailed the estate agent confirming that we had secured mortgage approval and had shown him proof of funds, that was enough for DNG at that point. Bank statements are a massive no from me!

Discodog

I would be tempted to drop a letter in the door of the seller saying that you really want to buy their house but the agent is being a dick

https://www.boards.ie/discussion/comment/120857894#Comment_120857894

Why wait for an invitation to bid if you were happy to go above the highest bid on Friday?

For the record, I think it should be compulsory for all bids to have supporting proof of funds, obviously the bidder should not be required to show the limit of funds approved, only what they are bidding. If bidders have an issue with that, then it’s better for vendor and other bidders if their bids are not considered. Bluffers and snow flakes just end up costing other bidders more.

spaceHopper

In a way it's good that they look for proof of funds, it gets rid of dreamers who can't close but drive up the price. I would alway have a letter as you did with proof of mortgage approval and letter from solicitor to stating you have a deposit. If the EA asks for more, say it's confidential but if they want to share the price the seller will take it off the market for you'll consider it and get back to them. They'll say that's confidential too but you've made your point.

Dancork7

https://www.boards.ie/discussion/comment/120861666#Comment_120861666

Tbf as I mentioned I had no issues on the bid or providing proof of funds we gave solicitors letter outlining proof of funds and a letter from AIB with the same.

We just refused to give a breakdown of the exact debt to cash number and bids just got challenged by EA every time as to how much was cash as other party was cash buyer and showed them everything which I am not telling them.

https://www.boards.ie/discussion/comment/120862006#Comment_120862006

If you are bidding against a cash buyer and you need finance, then the cash buyer is always the more appealing offer. At that stage, if you want the property, you have to make you/your bid more appealing/less risky. Your call.

Furze99

https://www.boards.ie/discussion/comment/120862006#Comment_120862006

Had the cash buyer shown proof of funds with bank statement/ letter?

o1s1n

https://www.boards.ie/discussion/comment/120862125#Comment_120862125

How would the OP have any way of knowing this?

Years ago I was a cash buyer and had to show proof of funds with a bank account statement but that was only after the bidding war was complete.

listermint

It's a hard one to gauge. On one hand the agent could be doing due diligence on the other they could be gauging your limits so they can get the lowest possible value for the cash buyer. Cash buyer can imply someone investing and multiple properties i.e previous relationship with agent. I don't think you can ever 100 percent trust their isn't other motives.

PommieBast

https://www.boards.ie/discussion/comment/120861917#Comment_120861917

Quid pro quo bidders also need protection from phantom bids. I've absolutely no doubt in my mind some EAs take one look at proof of funds and use that as a guide to how much they can gouge out of someone.

Furze99

https://www.boards.ie/discussion/comment/120862245#Comment_120862245

That was fair enough, after you had won the bidding.

Implied above that EA was looking for excessive level of proof during bidding. If I was OP, I would hope that EA was applying same due diligence to both parties.

lmk123

I’ve dealt with a few both buying and selling and in my opinion they’re the lowest of the low and the most dishonest “profession” you could ever deal with, literally ripping people off for the biggest purchase they will ever make in most cases. It’s beyond comprehension that the current system hasn’t changed / been made more transparent, but why would they without government intervention, they have a license to do whatever they like as it is.

PommieBast

https://www.boards.ie/discussion/comment/120864747#Comment_120864747

I sometimes wonder what goes through their minds. Bare-faced lies that even the most basic of due-diligence would spot and lead to withdrawal of offers down the line. After subsequently dealing with EAs in London (who are dodgy in their own ways) I really wondered whether Irish EAs are actually going out of their way to be especially obnoxious.

herbalplants

https://www.boards.ie/discussion/comment/120864881#Comment_120864881

How the lack of transparency hasn't been picked yet about EA in Ireland is baffling. I think there is no other country, where the buying process through an EA is as bad, EA in Ireland walk around like Gods, most of them anyway.

limnam

https://www.boards.ie/discussion/comment/120866183#Comment_120866183

We have the worst of both sides.

Irish buyers tend to be completely clueless on most things related to buying a house.

There's more thought put into thier two week holiday in Spain than the biggest financial transaction they're ever likely to make.

Which means EA can pull the wool over most buyers eyes.

We need changes on both sides. Transparent buying/selling process. Basic education around personal finances in schools.