OfflineEveryday for the past 2 months in the interest of finding motivated sellers and wholesaling/assigning I send 5 discount offers to my realtor against the aged listings. I fill out the offer form, scan it, and email it to him. He then sends it along to the listing agent.
Here's the issue: I fill out the contract to purchase stating a $100 deposit to bind the Offer and then $400 as additional deposit paid upon execution of the P&S. Occasionally, my realtor receives a response from the listing agent looking for a copy of the deposit check and sometimes even more $ before they'll present it to the Seller. Is this appropriate? Does the listing agent have this right? Will the check be deposited?
Thanks
David Visco
Davara Real Estation Solutions
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You could have your agent state that it will be deposited upon the acceptance of offer. You can still send a copy of a check for that amount with the offer, but it does not HAVE to be deposited with anyone until the offer is accepted. YOu might also need to offer a proof of funds letter too, but you can get one of those from your friendly transactional funder or a mortgage broker or your private investor who will fund the deal.
It is not a requirement to have money placed anywhere prior to offer acceptance, however there might be norms for certian areas or criteria that certain sellers (such as banks) require their agents to follow.
They want to know your legit and intend to execute and it seems that they think that this will make you a more solid buyer.
I would just put the clause listed above into the offer, maybe have a copy of a check on hand for your agent to send over and then let it be.
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Is there any way to submit a purchase offer without putting up earnest money?
I have a realitor who is also a friend & he tells me I can't put an offer on a property unless I write a $500 check. Is there any legal way around this to show the seller I'm still interested?
I can provide POF but I was told that wasn't acceptable.
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