So, where I live there is in a major seller's market. Houses are sold within days of listing, which makes things like getting loan approval for houses a bit of an issue. I know I can get a blank letter for, lets say 100,000 round, but I'm looking into houses that are 75,000 to 80,000. I've been warned by people who don't have a great deal of financial domain knowledge that if I make an offer with the letter for 100,000, the buyer will know I am able to afford their asking price and thus won't typically be willing to lower their price much if at all. It effectively takes away a bargaining chip I have when trying to negotiate the price of the house.
I'm not sure I believe this statement. I would think that a buyer wouldn't just be magically allowed to know how much I can afford when I make an offer, they should only know how much I am offering. I was hoping someone could weigh in;
Does an offer to purchase a house at a give price disclose the full amount that a bank has approved the borrower for? If it matters, I'm looking in Wichita, Ks.