Posted by ScottE on February 10, 2001 at 01:03:46:
Hi Melissa,
If you have done your homework and are pretty sure you are making the right offer (read low enough) then hunker down and put up the $200-500 it may take to get them to sign up.
One thing you can do to buy yourself a day is to write a clause in the contract stating you will deliver certified funds (in whatever amount you have agreed) within 24 hours of acceptance of your offer. That way you know you have a deal and you WILL find the money to put up.
Just a side note- earnest money is NOT required, contrary to what most agents will tell you, however, it is customary and you’re better off not getting into a pi$$ing contest with them. If they balk at the above idea, or they balk at a smaller amount, I just tell them “Ms./Mr. Agent, if I put $500 or $1,000 up on every offer I made, I’d run out of cash flow pretty quickly. Besides, that earnest money is just used to ‘firm up’ the buyer and if the seller will take my offer, I assure I will close as long as everything checks out as we agreed in the contract”.
Posted by Melissa Greene on February 09, 2001 at 19:32:56:
Does anyone have any advice on how to get around putting up earnest money when you are making an offer thru a realtor? I am getting ready to submit an offer but kind of want to leave the earnest money part out of it. LOL Help please!!!
Posted by Charles Steed on February 10, 2001 at 10:42:26:
Melissa-
When the process of REI comes full circle, and you find yourself selling, how excited will you be to take your property off the market without the buyer showing good faith? That good faith is displayed with earnest money. It’s probably true that there’s no law that says you must put up a deposit, yet there are many ways to to bind your agreement. You might consider offering a promissory note that can be converted to cash at closing. There are a few other suggestions regarding earnest money posted recently.
If the deal is a good one, earnest money should be no problem, and if the sellers are truly motivated earnest money will be the farthest thing from their minds. If you want to be taken seriously out there, this is one of the traditions you’re going to have to get used to.