Houston, TX · Member since 2016 · 71 posts · 23 votes
In Texas, the TREC contract is long and requires earnest money. For those of you who follow @Brandon Turnerand his advice to "make lots of offers", do you (or your agent) submit a full contract and earnest money check and option fee every time, or can you get your offers taken seriously using an offer sheet and proof of funds?
Flipper/Rehabber · Temple, TX · Member since 2008 · 169 posts · 46 votes
10y
It will sure depend on who your submitting offers to and if you're using a realtor. If using a realtor, they have to use the promulgated state forms. Im a investor minded Texas broker so I use the state forms. But sometimes when buying properties, I use 1-2 pager. There are multiple offer programs out there that have forms to fill out and submit to sellers or seller reps. I just dont know them. Good luck.
Flipper/Rehabber · Temple, TX · Member since 2008 · 169 posts · 46 votes
10y
It will sure depend on who your submitting offers to and if you're using a realtor. If using a realtor, they have to use the promulgated state forms. Im a investor minded Texas broker so I use the state forms. But sometimes when buying properties, I use 1-2 pager. There are multiple offer programs out there that have forms to fill out and submit to sellers or seller reps. I just dont know them. Good luck.
Rental Property Investor · Dover, DE · Member since 2015 · 11 posts · 11 votes
10y
I'm not licensed in TX, but here in Delaware banks & short sale attorneys are going to respond better to the standard contract. When you're dealing with a traditional agent/seller situation, verbal offers can go a long way before ink and paper have to be involved. They aren't really binding, but can save time if you and the seller are too far apart on price. If you are making a cash offer, a lot of the info on the contract can be marked "N/A" because it applies to inspections, well/septic, financing contingencies, etc. In the case of cash offers, proof of funds may be sufficient for the purposes of making an offer. If you will be using financing, you'll need to submit earnest money, but it won't be placed in escrow until your offer is accepted. There is also an option to submit the earnest money within x days of your offer being accepted and if you can do this in TX and will be writing a lot of offers it might be a great option. It would certainly save you the writing and voiding of a lot of checks. Again, I don't know how any of this will translate in Texas, but hopefully some of it helps!
Real Estate Broker · Cypress, TX · Member since 2013 · 822 posts · 468 votes
10y
Most offers in Houston are made electronically and Option Fee/EMD is not due, unless the seller expressly requires it to be, until the offer is accepted. Lots of banks like to see a copy of the EMD check with the offer if it is a foreclosure situation, but for the majority of offers I write, it is dealt with post-acceptance. As a side note, also, most banks will give you an inspection contingency period, but they do not want to collect any option money at all.
Investor · Daphne, AL · Member since 2014 · 1k+ posts · 242 votes
10y
When we make an offer, we include a full complement of documents and an earnest money check. Otherwise, we would never be taken seriously in our market. Good luck.
Rental Property Investor · Saint Louis, MO · Member since 2016 · 162 posts · 53 votes
10y
In Missouri, you can state that earnest money can be provided upon offer acceptance. Maybe that will work in Texas too. We have verbal offers here too. Not sure if these are options there. Then once a price is agreed on, a full contract is put together with earnest money.
Hopefully you can incorporate one, or both, of these.