Members: 114,168 -
661 Online Now Login
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Blog entries tagged with "earnest money":
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers
and brokers listed on this site. These real estate profiles, blogs and
blog entries are provided here as a courtesy to
our visitors to help them make an informed decision when buying or selling a house. ActiveRain
Corp. takes no responsibility for the content in these profiles, that are written by the members
of this community.
© 2007 ActiveRain Corp. All Rights Reserved 
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A quick post for my fellow real estate professionals in Arizona; 
Before Closing
1. Order your optional survey within 7 days of closing.
FUNDS TO CLOSE for FHA
With DAPS (Down payment Assistance Programs like Nehemiah) going away and the increased requirement of 3.5% buyer contribution, I wanted to share with you the FHA guidelines of FUNDS TO CLOSE. ***Some of these FHA guidelines may have additional investor and industry restrictions so verification per … (4 comments)
Believe it or not; Homes are selling. Yes, it's true. I will say it again. Homes are selling!
Recently I represented a client in a transaction that I had worked on for around four months that wound up falling apart. It was not your typical resale type deal. It was bank owned (so yes, you already know what that means time-wise) and it had been sitting on the market … (0 comments)
One of the questions that arises on a regular basis has to do with earnest money. First, what is earnest money? Wikipedia gives a wonderful definition of the term here. Basically, it is the deposit made towards the purchase of real estate and is part of your down payment. In South … (6 comments)
Don't forget if you subscribe to my blog this week you'll be entered to win a Starbucks card to be mailed out next week. If you join our group "Got Money?" I'll enter your name TWICE, and if you post to the "Got Money?" group I'll enter your name THREE TIMES in … (14 comments)
I love to read questions posed on ActiveRain and this evening after reading a comment about when an agent should submit a copy of the earnest money, it brought to mind how we as agents are entrusted with our clients personal and sensitive information.
Most REALTORS in Texas know about the sudden closing of United Title Company. I was very fortunate as were my clients. We were scheduled to close on my buyers' home the day after United closed its doors. Although we were delayed one day, we were able to transfer the account to … (1 comments)
The question reguarding the earnest money amount is almost always asked by the home seller or buyerThe answer varies depending on the circumstanses, like - is there multiple offers, is this a land sale, closing date, most times we might offer 1% of the home sales price but like to get 2% when representing the home seller.When using … (0 comments)
Let's talk about earnest money. Most clients want to know that you are sincere in your attempt to purchase their home. I know there are a lot of people out there who tout buying property with "NO MONEY DOWN" but I am not one of those. If you do not have … (0 comments)
You've probably heard the term "earnest money" and wondered what it meant or how it worked. What is earnest money? Earnest money is the amount you give to the seller to show you are earnest about your intent to purchase their property. After all, if they are going to remove their … (0 comments)
I had taken a listing back in October 2007 and at that time, I knew the seller had priced the home too high for the location BUT despite my advice, the seller was adamant about setting it as such. So, of course there had been no activity. After several months of … (3 comments)
QUESTION:When a property under appraises what the heck do we do!? The bank insists that the seller will have to reduce their price to the appraisal amount and the seller insists we put more money down!
A purchase agreement for buying a home involves more terms that just the price. There is personal property to discuss, possession, rent, tests, inspections, closing dates, and more. One term that throws some buyers, especially first time buyers, for loops is the earnest money deposit. What is it? Why do I … (0 comments)
This could have been an easy and sweet success story from beginning to end. After he had been looking for different things in different neighborhoods, my buyer finally walked into the place that had it all: the right kind of building, the right floor plan, the right types of amenities, a … (9 comments)
Apparently, there is a checklist at many of the larger brokerages in Washington State for agents to follow during a transaction. These checklists are inaccurate, and if brokers and agents were paying attention, they might realize this.
I have been asked so many questions about REO's. They are like no other type of listing. The more you deal with these transactions, the more you learn, but NEVER will you know everything. Each property and Bank (or seller) handles things differently. So here's the answers to some questions I receive...
Whenever you buy a new house, you learn the importance of being earnest. You will be asked to write a great big check, your earnest money, that is deposited in a place set forth in your purchase agreement. Then, at settlement, it is applied to your down payment and closing costs.
When a buyer and seller reach agreement on a home sale, the buyer typically puts a small amount of money into a trust account.
This up-front deposit is more commonly known as "earnest money".
A sales contract's earnest money requirement will vary from contract to contract. It can be as … (0 comments)
I have just lost the biggest potential buyer thus far in my career...because I require my buyers to sign an exclusive buyer's agreement contract.
Nonsense! I just attended a class on "Successfully Selling HUD Homes" at our local MLS and what an eye opener. In my career, I had only submitted 1 electronic offer and it was very stressful. I didn't know what I was doing - it was the blind leading the blind. To … (5 comments)
Buyers and sellers will ask me, "When is the house really sold?"
At the time a written offer on a property is initiated, you will be required to make a depot in the form of a personal check. The amount deposited will be kept in the trust account of the listing Companies title company. The exception to this is the case of a … (0 comments)
How your earnest money advice can make or break a deal
It's no secret that the mortgage industry is in trouble... we are hearing about it on a daily basis through our favorite media outlets. 
Common Questions About Down Payment Assistance Programs. 
I was in a meeting yesterday with one of my brokers when the subject of earnest money came up.
Purchasing a home for the first time can be an anxious time for most people. A home typically will be the single most expensive purchase anyone will make in their lifetime. Besides the obvious house payment, including taxes and interest, many don't factor in any other costs associated with home ownership. … (0 comments)
When a buyer and seller reach agreement on a home sale, the buyer typically puts a small amount of money into a trust account. 
Let's hear som thoughts on how much is a fair amount to put up for "Earnest Money." I explain to my buying clients that "earnest money" shows their interest or good faith in the property. Am I wrong! Is there a rule of thumb for deciding what is an appropriate amount … (14 comments)
When one of my clients is about purchase property the first thing I tell them is that they need to have funds available for a deposit. This is what is called an Earnest Money Deposit. It is a "good faith" deposit, not a down payment. A deposit showing that in good … (0 comments)
I've worked with people who didn't want to provide earnest money. While earnest money is not required in the state of South Carolina, I've come to the realization that a contract with only a handshake ain't worth spit. Well here we go again. This time 'the check's in the mail,' and … (3 comments)
At the time a written offer on a property is initiated, you will be required to include a personal check, cashier's check or cash. The amount is usually for 1% of the purchase price that is written to show that the buyer is "in earnest" about the desire to purchase the … (0 comments)
Earnest money shows commitment to buy. My real estate experience has shown that many home buyers in the Pensacola real estate market do not understand the concept of earnest money. This is an important concept to understand when making an offer on Pensacola real estate. Click the link below to read Part 1 of this article:
Raleigh Real Estate - The importance of Earnest Money
… (0 comments)
… (0 comments)
NO DEPOSIT, NO RETURN!
Well, Wikipedia says.... "An earnest payment (sometimes called earnest money or simply Earnest, or alternatively a Good-faith deposit) is a deposit towards the purchase of real estate made by a buyer to demonstrate that he/she is serious (earnest) about wanting to complete the purchase. When a buyer makes an offer to … (2 comments)
Buying property in the North Georgia Blue Ridge Mountains: 
I will ask this in the form of a logic type question as I have gone back and forth over and over the GA Real Estate code and the GA code and can not find answer.
When buying a home, would you consider asking the sellers to "hold" their home off the market without offering to give them a deposit? As a seller, would you take your home "off the market" for purchasers who were unwilling to give you a sum of money as a deposit? In … (0 comments)
So, you contact every agency in town for to engage a REALTOR and you find that everyone is off for the day. And you need an agent.
Every real estate transaction has a series of steps along the process to get buyer and seller together for a successful purchase. Articles have and will be written about each of these little steps along the way and earnest money is one of those steps that can seem like a strange … (0 comments)
WHAT HAPPENS TO PENDING SALES?
Buyers have heard time and again from their real estate agents that they should have a general home inspection before purchasing a property. But what about a mold inspection?
Earnest money accomplishes a number of things:
I have a listing I recently received an offer on and along with the offer was an "earnest money note" that stated by a certain date this buyer would hand over the $500. My seller agreed to accepting this note and we felt everything would go smoothly, after all it was … (15 comments)
Recently our industry has been flooded with new agents that have little or no supervision, and or experience. They run around writing offers with unqualified buyers, or buyers that are using them for their lack of knowledge. To the unsuspecting and unbeknown listing agent... they may receive an offer that is … (51 comments)
ear·nest 1 adj.
Prospective buyers just left the home you have For Sale. They said they would pay full price which sounded great. But then they asked you to hold the house for them until next month. They didn't offer to give you a deposit to hold the home, either. Do you think you … (1 comments)
Earnest money. It's an interesting concept. It's not a deposit, because the money goes to the buyer at the closing. It's not a bribe, because it's totally legal. It's not required...but it is by practice something just expected. And it's not always cash! Which is just about the complete circle. So … (15 comments)
In Utah, THE FINANCING CONTINGENCY in an offer is a protection to the Buyer if their financing falls through. 
I have written my last contract with no earnest money. A young couple called me and asked me to show them one of my listings this past week. They were not the typical first-time homebuyers. They were not nervous, excited, happy or a little bit scared. They were...well...bored! I could not … (1 comments)
Content Provided Courtesy of Christina Whipple · Alamo Home Team
Experienced home buyers know that one of the first-steps in beginning a successful search for a new house is taking a hard, objective look at finances. Determining how much money you can dedicate to the purchase of your new house affects almost every aspect of buying a new home - including … (0 comments)
Earnest money makes a statement to the seller. It tells Mr. Seller how much you are willing to risk on your offer. This tells him how serious you are about carrying through on the contract. If your offer is low, by all means, consider a larger earnest deposit. This tells the … (0 comments)
Fresh off a deal falling through in the 11th hour and 45 minutes, I feel very compelled to write this post about the need for earnest money deposit release rules to change. In this particular deal, the buyer had an approved loan, we were two days from closing, they changed their … (6 comments)
The initial deposit a Buyer is willing to make to purchase a home is a good indication of how serious and credible thier intentions are. When lending standards were more lenient, we would usually accept a purchase offer with less than a 3% deposit. In California a 3% deposit is the benchmark … (0 comments)
Every home buyer loves the process of visiting homes and finding that perfect place to call home. Sitting down and writing the offer is not always as much fun! For many people, the process of buying a home is something they go through only once or twice in a lifetime. New … (0 comments)
On Monday we heard from a Buyer's Agent that his Buyer was cancelling the contract based on an "Unfulfilled Loan Contingency". This happens from time to time - but it's always important to carefully review the loan denial from the lender - and to dig deeper if it appears the original … (42 comments)
What is the Buyer's Premium? The buyer's premium is a service charge that is added to the high bid for our public auctions. A 10% Buyer Premium is normal additional to the winning bid. In this regard, buyers pay our fee not the sellers. Sheriff's auctions or foreclosure auctions generally do … (2 comments)
I'm probably going to upset many of you across the country (slow markets), writing about multiple offer situations, but our market here in Seattle is going gangbusters and it can be quite frustrating for the selling agents and the buyers. In our market, basically anything under $1M in the popular neighborhoods … (3 comments)
Buyer's frequently asked questions
The past few years presented quite a challenge for people trying to buy a home in Seattle. Low interest rates and an influx of people moving to the area have created an atmosphere of heavy competition. It is not uncommon for five or more offers to be presented on one home … (0 comments)
Here is an overview of the types of closing costs you may incur on your loan when you buy real estate in Northwest Indiana. Some are one-time fees, while others reoccur over the life of the loan. When you apply for your loan, you will receive a Good Faith Estimate of … (0 comments)
Sometimes buyers get the mistaken impression that if they decide to back out of a contract, that the most they can lose is their earnest money. I think some agents are under this impression also. Our Georgia contracts state:
YEA, yes, YEA. We finally got the money. 
When you sign an offer to purchase, your realtor will ask you for "earnest money." This refers to a monetary commitment that shows you are serious about wanting to buy. Usually, you will be asked to write a check for one to 10 percent of the sales price. 
As a buyer, you pay nothing for my services. Why? Because the commission on the sale of a home is paid by the seller. (To accept any money from you would be illegal.) My first responsibility is to give you the official pamphlet on Washington State Agency Law. STEP 1 So … (0 comments)
Earnest Money – whenever we’re writing up an offer for a buyer, invariably the one thing that generates the most questions is earnest money. What is it, why do I need it, how much, will I lose it – these questions almost always require a lot of discussion and education. … (7 comments)