Posted by CarolFL on March 06, 2000 at 20:54:09:
William,
Let me clarify. There is no back door, except financing, on those HUDS. Actually, once we found EXTENSIVE termite damage in one we had contracted, got a letter from our lender saying that without repairs they could not lend, and we got our deposit back!
HOW MUCH EARNEST MONEY IS FAIR? - Posted by JENNIFER GORRIARAN
Posted by JENNIFER GORRIARAN on March 06, 2000 at 16:43:33:
What is a fair amount of earnest money to put up on a property that is $165,000 in Houston, TX? Thanks for answering!
Re: HOW MUCH EARNEST MONEY IS FAIR? - Posted by Chris
Posted by Chris on March 07, 2000 at 03:33:08:
Re: HOW MUCH EARNEST MONEY IS FAIR? - Posted by Joe Kaiser
Posted by Joe Kaiser on March 07, 2000 at 24:47:54:
There is no correct answer here since “fairness” has nothing to do with it. What’s fair and what isn’t is a question for other matters.
You ask for and do what makes good business sense.
Joe
Re: HOW MUCH EARNEST MONEY IS FAIR? - Posted by Eduardo (OR)
Posted by Eduardo (OR) on March 06, 2000 at 18:48:56:
Jennifer–
A couple of years ago I found a house that I negotiated a sale price of $36,300 on. I offered all cash ($36,300 earnest money, if you will), no inspections, close in a week. My offer was accepted and today I still own the property which is now worth $80,000, is in a good neighborhood, and for which I have been receiving $540.00 a month rent ever since I bought it. With other aspects factored in, my rate of return is still over 30%. To me, 100% was fair earnest money on that particular deal. --Eduardo
Re: HOW MUCH EARNEST MONEY IS FAIR? - Posted by CarolFL
Posted by CarolFL on March 06, 2000 at 17:46:12:
As the seller, as much as you can get.
As the buyer, as little as possible.
It’s all relative, and why suppose there is only one answer?
In my case, as I buyer, if I MUST, I may go as high as $500! ($1000 on hud’s is required)
Generally it is a moot point as I convince them I intend to close and have sort of a track record… and my contract includes a back door should I want/need it.
Go for what suits YOU, and then negotiate if necessary. Keep control of the deal.
Have fun!
Re: HOW MUCH EARNEST MONEY IS FAIR? - Posted by WilliamGA
Posted by WilliamGA on March 06, 2000 at 20:10:22:
Carol,
What back door clause do you use when bidding on a HUD. I am planning on starting to bid on these soon.
Thanks,
WilliamGA