OfflineWith a Realtor, I only want to give $100 max for earnest money, but Realtors have told me that the Seller Agent will not accept it.I feel like it is almost bullying me.
I have also been told by an Investor, who has made hundreds of deals, never give more than $100, even if the Realtor sqawks about it.
Could you please give me your experiences, especially in the state of Texas with Realtors?
Secondly, after the ernest money is given, when assigning the Contract, does the earnest money I ask from the end Buyer come out of my Assignment Fee?
Thank you so much. I have learned so much from you all here.
To your Success and Blessings!
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In my experience as a Realtor in Texas, I have never once seen a contract accepted with earnest money less than $500. The standard is $500 or $1000, depending on the cost of the property. However, if you want to negotiate with the sellers, your agent should present your offer along with the $100 EM because they are obligated to do act according to what their client (you) wishes. Almost all of my experience has been retail RE, not investment RE, so I'm sure that makes a difference.
Don't think of it as if your agent is "bullying" you... they're just going off of what they know is the standard. Just like it's widely known that there is no such thing as a "set" fee for an agents commission, but everyone knows that the standard is 3% per agent. These rates; EM, commission, option fees, inspection costs, closing costs; everything is negotiable. If they won't negotiate, they aren't very motivated or are too scared to take the risk. You will have to decide whether to proceed or move on. If you take a defensive approach, you will have a hard time making your REA understand what you are trying to accomplish without putting THEM on the defensive as well. Good Luck!
Monica
Skeptic, turned hopeful, turned determined!
You will NEVER succeed if you don't try.
Monica's comments are dead on! Everything is negotiable, so just put in $100 EM and see what they come back at. In my personal experience, $500-$1,000 seems to be the average EM, as stated above by Monica too. The only exception is REO's, where up to $3,000 has been the norm for me.
Hope that helps and good luck!
- Tom
If offer is cash, proof of funds is required. A letter from bank stating funds equal to or greater than purchase price are available to buyer, or a bank statement in buyer’s name are both acceptable.
An earnest money deposit of a minimum of $1000 is required for most offers. In some cases, the minimum earnest money may be up to 3% of the purchase price. For cash offers, the minimum earnest money deposit is sometimes 10%. See bottom of page for required minimum Earnest Money Deposit by property address. All earnest money deposit checks should be made out to; HOME REALTY Escrow Account. Check must accompany offer. Do not bring cash. In some cases, the earnest money deposit must be in the form of a cashier’s check. If a cashier’s check is required, it will be noted a bottom of page under REO's property address.
Provide a self addressed stamped envelope when you bring the purchase offer. (addressed to you or the purchaser, your choice) If your purchaser’s offer is not accepted, their check will be voided and placed in the mail within 3 to 5 business days after all counter offers are rejected. Earnest money deposit checks for accepted offers will be deposited into the HOME REALTY Escrow Account immediately upon offer acceptance. Should the contract fail to close, and the if purchaser is entitled to receive their earnest money deposit back, a check written on the HOME REALTY Escrow Account will be placed in the mail within 3 to 5 business days upon HOME REALTY receiving release signed by both seller and buyer. You are responsible for writing the release.
Offers contingent upon the sale of purchaser’s property will not be submitted or considered. Do not bring offers where the purchaser must sell before buying on the theory that if you leave the selling contingency out of the offer, they will simply have their loan rejected and all will be fine. If a loan is rejected because your purchaser did not sale current property, the REO company will seek your purchaser’s earnest money deposit.
Seller’s purchase addendum is required. Addendum's, lead paint disclosure, and any other disclosures or disclaimers are available for download at the bottom of these instructions. Addendum's will not be faxed unless they are not available for download on Internet.
Once all negotiations are complete, prepare a new sales contract and addendum's that is legible and reflect the final negotiated terms. Seller will not execute counter offer forms. Offers with changes and buyer initials will not be accepted. Prepare new documents that reflect the agreed counter offer terms. Seller often requires final documents within 2 business days. In order to meet this deadline, final original documents must be delivered to HOME REALTY's office by the following business day.
Randy Bailiff
Dean Graziosi Investment and Life Coach