The ink on the contract to purchase is not even dry and already that agent is asking for money! Something about good faith money for this man named "Ernest"? Let's look at some common questions concerning your Louisiana home deposit.
1) I thought we had 100% no money financing, what are you trying to pull?-- The deposit demonstrates two things two the seller A) that you are serious and B) you are not broke. An affirmative response to both is needed for a smooth transaction.
2) Where will my money go? Are those new rims on your Jeep?-- Your money will go in a real estate broker's escrow account until closing. The money is held in a separate account from the company's business fund. The broker who uses escrow funds to upgrade his Jeep may soon end up making license plates for the state...
3) This home has more issues than Judy Garland, I suppose the deposit money is lost--Not so fast there mr buyer. As long as you are within the inspection period (and your agent did not amend the contract), buyers typically get the deposit money back IF they follow the contract procedures.
4) The only thing hotter than the weather is this check-- When will the other broker deposit this check? Generally we do not deposit until terms are agreed to. But beware, they can deposit the check at any time. Make sure funds are available BEFORE signing your name. Need to wait until payday? Let me know. There is a chance the seller will agree.
At closing the buyer will get credit for the deposit amount. For clients using 100% financing, they typically get a portion of the deposit back in the form of a check.
Need help with your home purchase? Call Doug Rogers with Bayou Properties Realty today (318) 613-1994