Posted by RC on February 27, 2002 at 22:35:30:
I would think not - when I look at offers the earnest money is the least of my concerns because there are too many loopholes to consider it an asset (meaning the buyer has too many ways of getting it back) To my knowkedge there has never been any study to determine the psychlogical effects. It all comes down to the bottom line - that’s what’s important. The deal I just closed on today had $0 earnest money.
Lowball Offers - Posted by Jim-SC
Posted by Jim-SC on February 27, 2002 at 21:00:45:
When making lowball offers, does it have any effect in getting the offer accepted to put up a large earnest money deposit, say 10 percent? Thanks to all.
Re: Lowball Offers - Posted by SCook85
Posted by SCook85 on February 28, 2002 at 11:28:37:
This does work for me. I offer a minimum $2000 on all of my offers and I offer more if I really really want the deal.
It does get the attention of the sellers. I have on one occasion put up my entire purchase price of $26k as an earnest money deposit to make sure I got the home.
Steve
Re: Lowball Offers - Posted by Steve-DC
Posted by Steve-DC on February 28, 2002 at 08:15:34:
Jim,
I have a friend who sends out multiple low offers at a time. He states on the offer a $2K earnest money deposit.
His philosophy is that he will do anything to just get the seller’s attention. They will generally counter and at that point he can renegotiate the terms to pull the deal together.
I don’t believe he actually ever puts the earnest money up. Again, he just wants to get the seller’s attention.
Food for thought,
-Steve