Is $500 Real Estate Escrow deposit good enough for Orlando Home Buyer?
One of my Orlando Real Estate Home Buyers just gave me a real hard time about the Escrow Deposit for buying a Condo in Orlando, as we were going to write up an offer. Buyer thinks that escrow deposits are not an important part of negotiating real estate and $500 is a "good enough" for a total Real Estate Escrow deposit. Yes, A Real Estate Escrow Deposit is also called a Real Estate Earnest Money Deposit and it is "good faith" money deposited in an escrow account that shows the seller that buyer sincerely wants to buy the property. The Escrow deposit remains the Buyers Real Estate Money and credited to buyer at closing.
Here's the Real Estate $500 Escrow Deposit Story...The Buyers selected Condo community only has 14 units for sale, of which only 4 are on the first floor... the floor that buyer must have and wants furnished...none of which are furnished. Buyer found fault with all of the units available.
I worked like a fool and found an "unlisted-for-sale" unit that an agent had as a rental, and her seller was willing to sell...no foreclosure or short sale...what luck!
WOW! First Floor unit FURNISHED! Good Location! and CHEAP!! The seller was willing to sell it for an absolute bargain...there was NOTHING around priced that low! Buyer commented "For that price, the condo unit is a steal!!"
Yes, the Real Estate Property was a steal...
But instead of grabbing this absolute "steal" the buyer decides to offer less and only put $500 down as the total escrow. Since this was a cash deal, sellers agent wanted 10% in escrow. Buyers wife said that $500 was good enough...and decided to withdraw the offer and stopped payment on the $500 check...(like what, I was going to try to cash it?)
ESCROW DEPOSITS IN REAL ESTATE ARE IMPORTANT AND THEY ARE PART OF NEGOTIATIONS...
- If an Orlando Home Buyer is serious, they need to prove it with a decent deposit.
- If an Orlando Home Buyer's offer is low, they need to try to balance it out with a higher deposit.
- If an Orlando Home Buyer is committed to buying the property, the deposit will be credited at closing.
- If an Orlando Home Buyer's escrow deposit is not competitive, they will not snag the property.
- If an Orlando Home Buyer has an opportunity to get a "steal" they need to grab it while they can.
Real Estate Escrow deposits will vary by the State, the City, Cost of the Real Estate Property, and the seller requirements. Any home buyer that thinks that a $500 Real Estate Escrow deposit is "good enough" for Orlando will not be considered a credible buyer. What do you think?
For excellent Real Estate advice or to discuss your best options, call Buyers Broker of Florida 407-539-1053
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