Is it normal to ask for screenshots of bank account?

Rental Property Investor · Member since 2019 · 4 posts · 2 votes

We are in the process of buying a second home with 10% down. We sent in a purchase contract offer and our realtor came back and asked for screenshots of our cash reserves in order to show the seller that we could put 20% down if needed. We felt that this only gave the seller an excuse to ask for more as it showed that we had enough in our account to cover more. As soon as I sent them over I regretted it and the more I thought about it the less okay I was with it. Sure enough, they came back and asked for more. So my question is, is this a normal thing to do? I have never experienced it but have not had very much experience in real estate.

1 Reply

253 views

Most Popular Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

yes this is normal.. what we do ( since we have multiple accounts ) we simply move money from one to the other IE lower the balance when needed or raise it..

Or I will call my private banker and simply have them jot a one paragraph letter stating that as of this date my client has at least X amount of funds in their account..

screen shots of bank accounts of course can be manipulated.. so when i am a seller I am usually pretty cautious about that and want to verbally confirm just like I verbally confirm wire instructions EACH and EVERY Time..

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

5 Reply

See this reply in the discussion

27 Replies

Jump to latestLatest

Sort by

Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
Yes proof of funds is very normal, usually it is only for what you are offering though. You can also do a quick transfer between your checking and savings to make it appear as if you have just enough to offer what you're offering if you are concerned about things like this.
4 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
yes this is normal.. what we do ( since we have multiple accounts ) we simply move money from one to the other IE lower the balance when needed or raise it..

Or I will call my private banker and simply have them jot a one paragraph letter stating that as of this date my client has at least X amount of funds in their account..

screen shots of bank accounts of course can be manipulated.. so when i am a seller I am usually pretty cautious about that and want to verbally confirm just like I verbally confirm wire instructions EACH and EVERY Time..
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
5 Reply
Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
@Jay Hinrichs is right it is so easy to manipulate a screenshot of a bank account if realtors knew how worthless it was they'd probably stop asking. With 3 clicks you can edit the html code in your bank to say you have millions of dollars if you want to, the same way the refund scammers do.
2 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y
Yes proof of funds is standard. If you didnt provide it they would have ceased negotiating with you altogether and qould assume you had no money.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
1 Reply
Kale Leavitt
OP
Rental Property Investor · Member since 2019 · 4 posts · 2 votes
6y
@Jay Hinrichs that makes sense. I know we had to provide proof of funds within 3 days of acceptance, but I had never heard of doing it before the offer was accepted.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Kale Leavitt:
@Jay Hinrichs that makes sense. I know we had to provide proof of funds within 3 days of acceptance, but I had never heard of doing it before the offer was accepted.

Depends on how hot your market is and if you are up against competition
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Frank Procopio
Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
6y
Proof of funds is normal especially paying cash but have never asked for it to see the down payment. If you have a preapproval from a bank then that should suffice
0 Reply
Mark H. Porter
Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
6y
Just ask your bank for a statement that there are funds. I have never, ever, been asked for a copy of my bank statement.
0 Reply
Christopher Liu
Rental Property Investor · Santa Rosa CA · Member since 2014 · 56 posts · 48 votes
6y
I also just get the bank to give me a letter stating that I have the necessary funds.
0 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
@Kale Leavitt I'd never heard of it, but others who do more deals have. I don't see the point because you can manipulate it. Better to have a preapproved mortgage.
0 Reply
Steve Dai
Member since 2020 · 6 posts · 3 votes
6y
I don't see any harm to show proof of funds
0 Reply
Account Closed
Member since 2019 · 1k+ posts · 1k+ votes
6y
@Kale Leavitt
Like Jay said, bank writes a note indicating John / Jane doe has appropriate funds to purchase ____ property at the agreed upon price of $____.
1 Reply
Tony Mai
Rental Property Investor · Los Angeles, CA · Member since 2016 · 137 posts · 80 votes
6y
@Kale Leavitt In my market Orange County, CA proof of funds is required for some sellers before you can view their property. So a screen shot of POF is normal. I would say just screen shot enough POF to do the deal. If the seller asks for a higher offer you can always transfer more money into your accounts. I understand how you feel about the seller asking for more because they know you have more but also if it is a good property that also means someone may be willing to pay more as well and the seller could sell to someone else. Don't feel too bad, my market is super competitive congrats on being in contract.
2 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y
@Kale Leavitt I have only seen and done proof of funds within 24 hours of offer acceptance. I have never provided that during the negotiation process. I would have told them that I could provide proof of funds after they accept the offer. In the grand scheme of things, one day is nothing.
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y
Originally posted by @Aaron K.:
@Jay Hinrichs is right it is so easy to manipulate a screenshot of a bank account if realtors knew how worthless it was they'd probably stop asking. With 3 clicks you can edit the html code in your bank to say you have millions of dollars if you want to, the same way the refund scammers do.

It is easy to manipulate, but that becomes fraud. That is "next level" and criminal. That is why people still accept proof of funds letters, because 99.999% of people are not going to falsify documents. I agree the letters are worthless to a degree because the bank generating it doesn't promise any performance. It does filter out some people who are severely disqualified from wasting your time.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Joe Splitrock:
@Kale Leavitt I have only seen and done proof of funds within 24 hours of offer acceptance. I have never provided that during the negotiation process. I would have told them that I could provide proof of funds after they accept the offer. In the grand scheme of things, one day is nothing.
Very market specific.. in practice your a seller your agent brings you the top 5 offers you got on your property..
4 have POF and pre qual and 1 has no pof .. generally speaking that offer gets tossed.
this is for competitive situations.. Also size of EM deposit is a huge factor when in competition.. I have beat many a competitor to a deal when EM is normally 1k.. and I write a 10k check.. :)

Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Steve Morris
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y
"So my question is, is this a normal thing to do? I have never experienced it but have not had very much experience in real estate."

I'd call it proof of funds. I don't like screenshots if you can't redact stuff like acct numbers. I still ask unless I have a VERY strong idea of the buyer's wherewithal.

However, I'd shift enough money out of the acct to show you have the min beforehand and then do an acct statement.

In seller's defense, it weeds out tire-kickers and wholesalers.
0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Splitrock:
@Kale Leavitt I have only seen and done proof of funds within 24 hours of offer acceptance. I have never provided that during the negotiation process. I would have told them that I could provide proof of funds after they accept the offer. In the grand scheme of things, one day is nothing.
Very market specific.. in practice your a seller your agent brings you the top 5 offers you got on your property..
4 have POF and pre qual and 1 has no pof .. generally speaking that offer gets tossed.
this is for competitive situations.. Also size of EM deposit is a huge factor when in competition.. I have beat many a competitor to a deal when EM is normally 1k.. and I write a 10k check.. :)

I see what you are saying with pre-qualification and a bank letter with an offer. Most buyers agents here will require that from clients before submitting offers, so it kind of vetted by the agent. They don't want to waste their time either. I have never had a seller ask for screen shots of my bank account. We just closed today on one where we had $5000 EMD and cash close. Most others here offer $500 so it really makes it stand out. Some first time home buyers here don't even have $5000 in the bank.
0 Reply
Kale Leavitt
OP
Rental Property Investor · Member since 2019 · 4 posts · 2 votes
6y
@Joe Splitrock I would have been fine sending a screenshot showing I had the 10% down in our bank account, but the seller wanted to see if we had enough to cover 20% even though our pre-qualification letter showed we qualified for the amount with 10% down. We felt that this gave them leverage to ask for more than what we offered. They probably would have countered at that anyway but it is hard not thinking in the back of our mind that they only countered at this because they saw we had the funds to cover it via screenshots.
0 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
@Kale Leavitt
Yes that is common. Also, I’ve been a believer in the “show just barely enough cash so they don’t counter higher”. I had Much rather be selling to a buyer that has $50k cash when they need $21k, as opposed to one showing $22k.
It seems like the seller was going to counter your offer regardless, they just wanted to make sure you were “comfortably” qualified before actually going under contract....which I agree with.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Joe Splitrock:
Originally posted by @Jay Hinrichs:
Originally posted by @Joe Splitrock:
@Kale Leavitt I have only seen and done proof of funds within 24 hours of offer acceptance. I have never provided that during the negotiation process. I would have told them that I could provide proof of funds after they accept the offer. In the grand scheme of things, one day is nothing.
Very market specific.. in practice your a seller your agent brings you the top 5 offers you got on your property..
4 have POF and pre qual and 1 has no pof .. generally speaking that offer gets tossed.
this is for competitive situations.. Also size of EM deposit is a huge factor when in competition.. I have beat many a competitor to a deal when EM is normally 1k.. and I write a 10k check.. :)

I see what you are saying with pre-qualification and a bank letter with an offer. Most buyers agents here will require that from clients before submitting offers, so it kind of vetted by the agent. They don't want to waste their time either. I have never had a seller ask for screen shots of my bank account. We just closed today on one where we had $5000 EMD and cash close. Most others here offer $500 so it really makes it stand out. Some first time home buyers here don't even have $5000 in the bank.
Touche' and in markets were the agents never heard of an escalator clause that one works really good until the agents catch on..
I use to do that back in my timber days in the early to mid 90s.. agents and sellers were always taken aback ONE big EM and two offer of 2k over ask.. everyone else just offered full price.. and in these timber deals lots of margin .

Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y
Originally posted by @Kale Leavitt:
@Joe Splitrock I would have been fine sending a screenshot showing I had the 10% down in our bank account, but the seller wanted to see if we had enough to cover 20% even though our pre-qualification letter showed we qualified for the amount with 10% down. We felt that this gave them leverage to ask for more than what we offered. They probably would have countered at that anyway but it is hard not thinking in the back of our mind that they only countered at this because they saw we had the funds to cover it via screenshots.

I have enough money to pay way more than I am asking. It doesn't mean I will. If you are happy with the deal, I wouldn't worry about "what could have been".
0 Reply
Jason Butts
Rental Property Investor · Cambridge Ohio · Member since 2019 · 34 posts · 8 votes
6y
@Kale Leavitt
When I go through this, I transfer funds to a different account so that the account I am showing them does not have a higher balance, get my screenshots, and then transfer it back. That way they see what they need to see and nothing more.
0 Reply
Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
6y
I've seen people send a proof of funds bank account showing 900K on a 80K house. I think its a solid play. As a seller that offer at 80K cash from that buyer means more than an FHA 85k approved at $85,100
1 Reply
Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
6y
@Kale Leavitt All you have to do is say no, I am not paying more. This can force the Sellers hand. It works both ways. Now in today's market the seller may believe he will easily get that amount and say "no" to your counter offer. If the seller is asking too much it may sit and you may get a second chance. Or he may quickly sell it to someone else who will pay more.
Ultimately the market is going to set the price. Either a buyer comes up to the seller's price or the seller will have to come down to an amount that a buyer will pay. In the mean time there can be a lot of back and forth like the above getting to that price. It's called negotiating and it is just part of the game.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.