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Real Estate 101

October 30,2022 | Posted By Flavia Brown in Real Estate
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Can I really make an offer on a home with no upfront money and no qualifying documents? Sure you can. You can make an offer any way you like, even if the listing agent writes in the MLS property profile sheet that you must include various documents with your offer. The upfront money is the earnest money deposit (EMD) which is any amount up to 3% of the offered amount (changed to the same percentage of the purchase price if the offer is accepted). The qualifying documents are the lender’s pre-approval letter (unless the offer is all cash) and the proof of funds (POF) which is required from all buyers. The POF supports the down payment and closing costs, or for cash buyers the POF includes the purchase amount, down payment, and closing costs. The down payment is due one or two days before close of escrow, and the EMD becomes part of the down payment.
In a strong seller’s market (more demand than supply, low inventory, prices increasing, etc.) the mentioned items should accompany offers, especially if there are multiple offers. Why do some buyers want to delay presenting their proof of funds when they make an offer? Most often because they don’t want to display their bank statement when their offer hasn’t yet been accepted. However, buyers should have the items ready in case the offer is accepted. If the offer is accepted, the buyer’s agent should forward the two qualifying items to the listing agent a day or two after the offer is accepted and ratified, and the EMD should be wired to the escrow company.

Flavia Brown, Realtor® (17 years)
Cal DRE #01729313
Realty One Group United
Hermosa Beach and Torrance offices
310-702-6335 (cell/text)



Flavia did an exceptional job of getting my duplex sold, and found a 6-plex to complete a 1031 exchange transaction, all on time t...
- John Baker


22939 Hawthorne Blvd., Suite 203
Torrance CA 90505

DRE# 01729313

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