How to tell if a buyer is real: qualifying offers without an agent

When you sell with an agent, screening buyers is part of what the agent does in the background. They ask the financing questions, glance at the pre-approval, and quietly filter out the people who are months away from being able to buy. Selling your own home, that job is yours. The good news is that it is not hard, and a serious buyer can almost always show you something. The skill is knowing what to ask for and how to read it.

This matters because most buyers are not paying cash. In the National Association of Realtors’ 2025 Profile of Home Buyers and Sellers, 74% of buyers financed their purchase and 26% paid all cash. So for three out of four buyers, the real question is not “do they like the house” but “will a lender actually fund this loan.” That is what you are screening for.

Pre-approval versus pre-qualification

A pre-approval is the stronger document: it means the lender reviewed verified information about the buyer’s finances, while a pre-qualification can rest on unverified information the buyer reported. These two words get used loosely, sometimes interchangeably, and the difference is the single most useful thing to understand when you sell on your own.

The Consumer Financial Protection Bureau puts the distinction in terms of verification. Some lenders issue a pre-qualification letter based on unverified information the buyer reports: an estimated income, a rough sense of their debts, what they think they can put down. Some lenders only issue a pre-approval after reviewing verified information, taking a closer look at documented income, credit, debts, assets, and employment. A pre-approval reflects an actual review of the buyer’s finances. A pre-qualification can be little more than a friendly estimate.

So a pre-approval is the stronger document. But read carefully, because the label alone does not tell you everything. The CFPB’s point is that what matters is what verification actually went into the letter, not which word the lender printed on it.

A pre-approval letter worth trusting will usually show:

The lender’s name and letterhead, with a loan officer’s name and contact details.
A recent date. These letters go stale. One from six months ago tells you little about the buyer’s situation today. Many are written to expire in 60 to 90 days.
The loan type (conventional, FHA, VA, and so on), which hints at the appraisal and condition standards the home will face.
An approved amount, ideally at or above the price the buyer is offering.

One thing the CFPB is firm about: neither a pre-qualification nor a pre-approval is a guaranteed loan offer. It is the lender’s view based on certain assumptions. Final approval still depends on full underwriting, the appraisal, and the buyer’s finances holding steady through closing. Treat a pre-approval as a strong green light, not a sealed deal.

Proof of funds for a cash buyer

Proof of funds is evidence that a cash buyer holds enough liquid money to cover the purchase price plus closing costs. A cash buyer has no lender to vouch for them, so you ask them to vouch for themselves with this document, showing the money in an account they can reach.

Acceptable proof of funds usually looks like:

A recent bank or brokerage account statement showing a balance at or above the offer.
A signed letter from the bank or brokerage, on its letterhead, confirming the buyer holds funds at or above a stated amount.

What to check:

Look for	Why it matters
The institution’s name and letterhead	A real document from a real bank or brokerage, not a homemade page
The account holder’s name	It should match the buyer making the offer
A recent date	Last 30 to 60 days; an old statement proves little about today
A balance at or above the price plus costs	The whole point is that the money is actually there

A few honest notes. Buyers can, and often do, redact the account number on a statement or letter; that is normal and fine, since you do not need it. “Cash” in real estate means no mortgage, not literal currency; the money usually sits in a bank or brokerage account. And a plain screenshot with no source or letterhead is not proof of anything. If something looks thin, it is reasonable to ask for a bank-issued letter instead.

Earnest money is a signal, not just a deposit

Earnest money is a deposit the buyer makes to show good faith on a signed contract, held by a neutral third party and credited toward the purchase at closing. It is the third thing that separates a serious buyer from a browser, because it asks the buyer to put money at risk: if they walk for a reason the contract does not allow, they can lose it.

A buyer who agrees to a normal earnest money deposit for your area, and deposits it promptly with the escrow holder or closing agent, is telling you something with their money. A very low deposit, or foot-dragging on handing it over, is worth a second look. Earnest money is not a screening tool on its own, but combined with a solid pre-approval or proof of funds, it rounds out the picture. Our earnest money guide covers normal amounts, who holds it, and when it is at risk. For how it sits alongside the rest of the deal, see what is escrow when selling.

What to ask before a showing

Ask three things when someone requests a showing: whether they are pre-approved or paying cash, what their timeline is, and whether they are working with an agent. You do not need to interrogate anyone, and you should not demand a buyer’s full financial life before they have even seen the house, but these three short questions tell you most of what you need and cost you nothing.

Are you pre-approved for a mortgage, or paying cash? A pre-approved or cash buyer is ready to act. “We’re just starting to look” is fine too, it just tells you where they are.
What is your timeline? A buyer who needs to close in a normal window and is not chained to selling another home first is more straightforward to work with.
Are you working with an agent? This is not a filter, just useful to know. If they have a buyer’s agent, that agent will handle their side and may expect a commission, which is a thing to settle early. Our commission shift guide explains how that side is paid now.

You can fold these into the appointment request naturally, by phone, email, or text. A buyer who will not answer basic questions, or who gets cagey about whether they can finance, is a weak prospect, and that is worth knowing before you open your door.

This is also a safety matter. You are inviting a stranger into your home. Screen by appointment rather than holding an open-door event for anyone, try to have another adult present, and never show a home you are uncomfortable showing. Treat reluctance to identify themselves or answer simple questions as a reason to slow down, not speed up.

Asking for documentation the right way

You are well within your rights to make a current pre-approval or proof of funds a condition of accepting an offer. Many sellers ask for it up front, with the written offer, so they are comparing real buyers, not wishful ones. The polite framing is simple: “I’m asking every buyer for a current pre-approval or proof of funds with their offer.” A serious buyer will have one ready and will not be put off.

What you are not entitled to is a buyer’s entire financial history. You need enough to believe they can close, not their tax returns. A dated pre-approval letter, or a proof-of-funds letter, is plenty.

When you weigh competing offers, this documentation often matters more than the headline price. A slightly lower offer from a verified, pre-approved buyer with strong earnest money can be safer than a higher one with no proof behind it. To put numbers on that judgment, you can compare each offer’s price against its terms before you answer. Our reading offers and negotiating guide walks through judging an offer’s full strength, and make an offer without an agent shows the same documents from the buyer’s side, which is useful for knowing what good looks like.

The contingencies still matter, even with a pre-approval

A pre-approval is not a funded loan, so two contract terms keep protecting you, and can still unwind the deal, after you accept. It is tempting to relax once a buyer hands over a clean pre-approval. Do not relax all the way:

The financing contingency. Because a pre-approval is not a funded loan, the contract usually lets a financed buyer walk, and keep their earnest money, if their loan ultimately falls through. A solid pre-approval lowers that risk; it does not erase it.
The appraisal. When a buyer borrows, the lender orders an appraisal and will generally not lend more than the home is worth. If the appraisal comes in below the agreed price, the CFPB notes the buyer may have to make up the gap in cash, renegotiate, or walk. This can happen even with a flawless, fully pre-approved buyer, because it is about the property’s value, not the buyer’s credit.

None of this means a pre-approval is worthless. It means a pre-approval gets you a buyer a lender already likes, while the contingencies handle the things that can still go wrong between the offer and the closing table. Both are doing real work. For how these pieces fit into the final stretch, see closing and costs.

Red flags and scams

Slow down when a buyer shows no documentation, pressures you to skip steps, offers far over asking with unusual conditions, or asks you to move money outside escrow. Most buyers are honest people trying to buy a home. A few are not, and selling on your own removes the agent who would normally catch them. Watch for these.

No documentation and evasive answers. A buyer who cannot or will not show a pre-approval or proof of funds, and who dodges direct questions about how they will pay, has not earned your time.
Pressure and urgency. Rushing you to skip steps, sign quickly, or bypass a neutral escrow or title company is a classic manipulation. A real transaction can move briskly without abandoning the safeguards.
An unusually high offer with heavy conditions. An over-asking number wrapped in unusual demands, odd payment arrangements, or a request to handle money outside escrow is often a lure, not a windfall.
Overpayment and wire scams. The Federal Trade Commission warns about a scam where the “buyer” sends a check for more than the price and asks you to wire back the difference. The check later bounces and you are out the money you wired. The FTC’s rules are blunt: never accept a check for more than your selling price, and never agree to wire funds back to a buyer. Independently confirm who you are dealing with before money moves.
Wiring and instruction changes near closing. Real estate is a target for wire fraud. Be suspicious of any last-minute email changing where to send funds. Verify wire instructions by phone using a number you already had, not one from the email, and run closing money through a legitimate escrow or title company rather than handing it to a buyer directly.

When something feels off, slow down. There is no honest deal that requires you to skip verification, accept an inflated check, or wire money to a stranger.

A quick screening checklist

Ask up front: pre-approved or cash, timeline, working with an agent
Require a current pre-approval or proof of funds with any offer
Pre-approval: lender letterhead, recent date, loan type, amount at or above the offer
Proof of funds: institution name, account holder, recent date, balance covering price plus costs
Confirm earnest money is normal for the area and deposited promptly with escrow
Remember the financing and appraisal contingencies still apply, even with a pre-approval
Never accept a check over your price, never wire money back, verify any wire change by phone
Show by appointment, screen for safety, and slow down when something feels wrong

Once you can tell a real buyer from a tire-kicker, the rest of the sale gets easier. See how a verified offer flows through to closing in closing and costs, estimate what you keep with the net proceeds tool, and look up any term in the glossary.

This guide is general information, not legal or tax advice. Contracts, contingencies, and disclosure rules vary by state, so confirm the specifics with a real estate attorney or another qualified professional before you rely on them.

Sources used on this page

Every legal, tax, and process claim on this page traces to one of these. We re-check them on a schedule and date the page when anything changes.

What's the difference between a prequalification letter and a preapproval letter? (verification; neither is a guaranteed loan offer)Consumer Financial Protection Bureau · consumerfinance.gov
Mortgages key terms (earnest money, contingencies)Consumer Financial Protection Bureau · consumerfinance.gov
My appraisal is less than the sale price. What does that mean for me?Consumer Financial Protection Bureau · consumerfinance.gov
FTC Warns Consumers About Check Overpayment Scams (never accept a check over your price; never wire funds back)Federal Trade Commission · ftc.gov
2025 Profile of Home Buyers and Sellers (share of buyers who financed versus paid cash)National Association of Realtors · nar.realtor

Common questions

What is the difference between a pre-approval and a pre-qualification?

The terms vary by lender, but the difference that matters is verification. The Consumer Financial Protection Bureau says some lenders issue a pre-qualification letter based on unverified information you report, and only issue a pre-approval after reviewing verified information like your documented income, debts, and assets. A pre-approval is the stronger signal. Neither one is a guaranteed loan offer, so read what actually went into the letter, not just the word on it.

What should a proof of funds show for a cash buyer?

Enough liquid money to cover the purchase price plus closing costs, in an account the buyer can reach. A recent bank or brokerage statement, or a signed letter from the institution on its letterhead, both work. Look for the institution name, the account holder, a recent date, and a balance at or above the offer. Bank-printed letters can be redacted to hide the account number, which is fine. A screenshot with no source is not proof.

Can I ask a buyer to prove they can pay before I accept?

Yes. It is normal to require a current pre-approval letter or proof of funds with the offer, or as a condition of accepting it. You are not entitled to a buyer's full finances, but asking for a document that shows they can close is standard and expected. A serious buyer will have one ready and will not be offended by the request.

Does a pre-approval mean the sale is guaranteed?

No. The CFPB is explicit that a pre-approval letter is not a guaranteed loan offer. It is the lender's view based on certain assumptions, and final approval still depends on the full underwriting, the appraisal, and the buyer's finances not changing before closing. That is why the financing contingency and the appraisal contingency in the contract still matter even when the buyer is pre-approved.

How does earnest money tell me a buyer is serious?

Earnest money is a deposit the buyer puts up to show they mean it, held by a neutral third party and credited toward the purchase at closing. A buyer willing to put real money at risk, in line with what is normal in your area, is signaling commitment. A very low deposit, or resistance to depositing it promptly with the escrow holder, is worth noticing. See our guide on earnest money for how it works.

What are the warning signs of a fake or scam buyer?

No documentation and evasive answers about financing, pressure to move fast or skip steps, an unusually high offer loaded with conditions, and anything involving overpayment or wiring money back. The Federal Trade Commission warns about a scam where a buyer sends a check for more than the price and asks you to wire back the difference; the check later bounces. Never accept a check over your price, and never wire funds back to a buyer.

Should I screen buyers before letting them into my home?

Yes, for both deal and safety reasons. Before a showing, confirm whether they are pre-approved or paying cash, what their timeline is, and whether they are working with an agent. A buyer who will not answer basic questions or share any documentation is a weak prospect and a safety consideration. Show by appointment, ideally with another adult present, and follow the safety steps in our showings guidance.