Should you tell an estate agent your budget? (2023)

Can an estate agent asking for proof of funds before viewing?

You don't have to show proof of funds until you make an offer on a property. Some estate agents may ask to see it earlier. There's nothing wrong with doing this, but if you don't want to you don't have to. Showing evidence you have the funds in place means you are a serious buyer.

An Estate Agent must disclose all offers to a Seller promptly and in writing.

The risk isn't worth it

Legal implications aren't the only consideration. Estate agents are unlikely to lie about offers, because the risk of a buyer withdrawing from a sale is not worth the small amount of money they will gain if you increase your offer.

It's sometimes possible to get a deal in principle without proving where your deposit funds came from, but this a non-binding agreement and is by no means a mortgage guarantee.

Many times traditional sellers will receive multiple offers, but not ask for highest and best. In many states, the listing agent is required to tell all buyers when the seller receives other offers. When you are informed that there are multiple offers, don't wait around to see if they will ask for highest and best.

Do estate agents have to tell you about offers? An estate agent is legally obliged to tell you about every offer that is made, in writing. Even if the estate agent knows it's below the price you would accept, they still have to tell you the offer to allow you the opportunity to say no.

Answer: The short answer is no. There's no way to get absolute proof of another offer, except when an Escalation Addendum is used (which I'll address later), but there are strategies to help determine how legitimate a listing agent's claim of multiple offers is.

How do you get an offer accepted on a house?

Top Tip: Chase your solicitor at least once a week every week until you get your keys! Your solicitor is the gate keeper to your sale/purchase taking either 6 weeks or 16 weeks!

Call recordings can also be used to check the details of a conversation to clear up any misunderstandings or disputes should they arise. Bradleys Estate Agents uses call recording as a part of the communications solution we provide to them.

Doing so can drive the sales price and increase the chances of a bidding war. Raising the question, can a listing agent lie about multiple offers being on the table? The problem for buyers is that it's tough to prove whether a listing agent is lying or not. The short answer is, yes, they can.

Gazumping occurs when an agent or seller accepts an offer you make to buy a property at an agreed price but the property is sold to someone else. This usually happens when the vendor sells the property for a higher amount.

Proof of Funds usually comes in the form of a bank, security or custody statement, and can be procured from your bank or financial institution that holds your money. Bank statements are the most common document to use as POF and can typically be found online or at a bank branch.

As well as bank statements from the potential buyer, the solicitor/conveyancer will ask for statements from the third party. The person making the gift will also have to show where they got the money from.

What is a large deposit? A “large deposit” is any out-of-the-norm amount of money deposited into your checking, savings, or other asset accounts. An asset account is any place where you have funds available to you, including CDs, money market, retirement, and brokerage accounts.

Do you need to declare a gifted deposit? You will need to declare any gifts you use for your deposit. A declaration should show that you are not expected to pay back the gift. If you have to pay back money, it becomes a loan, which may make it harder to be approved for a mortgage.

Why do estate agents need bank statements when buying?

Why do estate agents need bank statements? Estate agents ask for bank statements for proof of funds, because this is usually easiest for buyers to find and send over.

According to the National Association of Realtors (NAR), the home offer with the fewest contingencies is often the most attractive. NAR states that “removing restrictions related to the sale of a current home and being flexible with things like the move-in date can make an offer stand out to a seller.”

But do sellers always accept the highest offer? The short answer is no. While the offer price is certainly one of the main things the seller will look at, it's not the only thing that matters. Savvy sellers (and sellers with smart Realtors) know that they need to consider the entire offer, not just the price.

Legally, agents in NSW are allowed to disclose current offers to any other potential buyers. Agents are required to inform the seller of all offers made to purchase the property, but there is no law to prohibit the disclosure of offers to potential buyers.