Paying Cash For DC Real Estate

The seller will want a Funds Verification Letter from the buyer’s banking institution confirming that available funds exist to cover the entire purchase price of the property at time of offer. This letter should be on the banking institution’s letterhead and signed by an officer of the institution (generally a Vice President or General Manager). The letter should not include statements of accounts or account numbers and other hyper-personal information, but can include a balance if desired.

Sellers are also likely to require a Buyer’s Financial Information Statement in addition to a Funds Verification Letter. The FIS is a standard GCAAR form which makes basic financial representations for assets, debts, savings, etc.

Some sellers and listing agents may request a pre-approval from a local, reputable lender in addition to a Financial Information Statement and a Funds Verification Letter. They see this as a third-party verification of your self-substantiated representations.

Cash buyers have the advantage over buyers financing their purchase in that they can close very quickly, often in as little as three to five days from date of contract, their offers do not carry appraisal contingencies, and risk of financing falling out is eliminated. For this reason, cash buyers have the upper hand in a multiple offer scenario. Cash buyers also pay lower closing costs and have more flexibility on offer price.