Include a Copy of The Earnest Money Deposit with Offer - WHY?!

Reblogger MichelleCherie Carr Crowe Just Call...408-252-8900
Real Estate Agent with Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty DRE# 00901962 Lic.1985

While I understand her point in Include a Copy of The Earnest Money Deposit with Offer - WHY?!, agents practicing real estate in Silicon Valley find it is helpful.

We've found that writing a deposit check and giving it to the buyer agent actually helps the buyer to psychologically recognize they are actually offering to buy the home.

Believe it or not, I've had buyers tell me they literally interpret the "3 days to deposit check" language as "I have 3 days to change my mind!"

Hello, it's not like buying a dress from Macy's and returning it the next day after wearing it at the party.

Original content by Jenny Durling BE# 01342428

faxed checks are useless There are still a lot of listings in the MLS with the instructions to include a copy of the earnest deposit check with an offer.  Any offers not including ALL required documents will not be considered.  Exactly what is the point of this?  I don’t know about you, but I’ve never heard of anyone being able to cash a COPY of a check.  Sure, in the “old” days when we actually delivered the offer to the listing agent we would include an honest to goodness check with the package. 

Now that we are using electronic signatures and emails (does anyone really USE a fax machine anymore?), what is the point of having our clients write useless checks to ‘escrow’?  I have had my share of arguments with listing agents, mostly REO agents who tell me “the bank requires it”.  Seriously, does any bank actually think they can deposit a copy of a check? I have a client who will write a check from his office, take a photo of it with his phone and text it over to me.  That’s right!  I am now sending photographs of checks with offer packages.  Does anyone else think this is as ridiculous as I do?

One of my colleagues is working with an investor who offers on property after property after property – many of them bank owned.  He has finally gotten to the point that he has taken a single check from his checkbook and made multiple copies of the blank check. Now he simply fills in a copy to fit whatever property he is offering on and gives that to his agent to submit with the package.  He may not be saving a tree but he is certainly saving himself money by not having to reorder checks as often!  It’s not just about investors either. In the current Los Angeles real estate market just about everything is selling in multiple offers.  A buyer will likely submit many offers before actually getting one accepted. Just how many useless checks are people expected to write and tear up?

 you can't cash a photocopy of a check

For several years, most Los Angeles agents have been filling writing something to the effect of “buyer to wire earnest deposit  to escrow” into the purchase contract to avoid having to deal with multiple checks from clients, logging checks and dealing with trust fund accounts.  The California Association of Realtors finally modified the purchase contract to include the option of ‘buyer shall deliver deposit directly to escrow holder”. So great, now we can simply check the box that the buyer will deliver the deposit after acceptance and be done with it.  But no! Even though this is now printed right in the contract, we are still being instructed to submit a copy of the EMD with the purchase offer.  I am hopeful that someday soon sellers who make this demand will realize that a fax, PDF or photograph of a check is not worth the paper it is written on.  

Jenny Durling - Los Angeles, Realtor



 

 

Jenny Durling
213-215-4758
L.A. Property Solutions
info@LApropertySolutions.com
LApropertySolutions.com

 

Copyright © 2012 By Jenny Durling * Include a Copy of Earnest Money Deposit With Offer – WHY?!

 

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Rainmaker
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Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

I think I commented on her blog.  ANybody can write an offer, and sometimes they use fake names, and sometimes the people don't even exist, or agents write offers for their co-workers using their wife's maiden name or husband's deceased mother's name.  A check is a good way to tell if there is a real person behind the offer, and not some imaginary person and the agent just wants to get the short sale process started, so they can settle on a price.

Jul 29, 2012 05:50 PM #1
Rainmaker
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Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

Hey Michelle- thanks for the reblog! It's my first!

Jul 30, 2012 01:21 PM #2
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