What’s with all the TLA’s (three letter acronyms) in Real Estate? Part 2

 

Many Real Estate Agents like to use acronyms in our business; today I will be covering POF and LOI.

What does POF and LOI stand for? Well, POF is Proof of Funds and LOI is Letter of Intent. When buying a home, all buyers must come in with their proof of funds. This allows the seller to see you are serious about buying their home. Many Real Estate Professionals include a copy of the proof of funds with the sales contract. If you do not include your Proof of Funds in your sales contract, the seller cannot give an educated answer whether they will accept your offer or not. Here in Phoenix Arizona, we have such a low amount of homes for sale that if you do not include you Proof of Funds with your sales contract, you may lose out to another buyer that did include theirs.

LOI, or Letter of Intent, is usually used when you are telling a seller you have an intention to buyer their property. This usually is not done on residential property but is done many times with commercial property or bulk sales from the bank. I have been involved with bulk sales in 2012/2013 and when a buyer is buying a larger number of properties directly from the bank, the bank requires both the Letter of intent and the Proof of funds.

Just remember, when considering buying a home or commercial building, it is always good to use a Real Estate Professional to help guide you on your transactions.

As of today, January 21, 2013, we only have 14,145 active single family homes in Maricopa County, and we have many buyers still wanting to come and live in our amazing state of Arizona. Please feel free to call me at 602.363.1720 or email me at Lydia@ArizonaPowerAgent.com for any details regarding selling or buying a home in Phoenix, Arizona.

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