Investor · Warwick, RI · Member since 2015 · 137 posts · 100 votes
I am about to make a cash offer for a SFH, my realtor insist that I still have to put at least 10% down ( he wants 20%) I said " why do i have to put anything down when we will be closing in 10 days on an all cash deal of $215k ? He insist you still have to put something down to show Im serious.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
@Bob Romano Well, there is the disconnect. Borrowing money from Any kind of lender is not a Cash offer, it is Financed offer. A cash offer means You already have the cash, in Your name in an account somewhere. Educated sellers, and agents, will also ask for a POF with a "cash" offer documenting You have yhe cash already in Your name.
Investor · Warwick, RI · Member since 2015 · 137 posts · 100 votes
8y
@Michael Plante He does not bring me the listings, I find them and call him to check on the property to see how it looks and any offers yet. I guess I can just call the listing agent myself next time .
Flipper/Rehabber · New Britain, CT · Member since 2017 · 80 posts · 28 votes
8y
@Bob Romano, I see how you and your agents are confused.
Firstly, hard money and even Private money are not cash, other members that have mentioned that are right. It is financing, just on different terms.
So you should write it as a financing deal, but exclude mortgage contingency from the contract, that tells the buyer that you are confident on getting funds in 10 days.
Secondly, your agent should not dictate you on what earnest deposit has to be, this is totally up to you to constitute the offer terms - agents duty is to submit it to the Listing agent for sellers acceptance / counter or decline.
If your agent is not comfortable working that way, he knows where the door is.
Now if he is TELLING you what the EMD has to be. If you don't have an exclusive right to buy contract signed with that agent, just let him go, he does not act in your best interest and therefore does not fulfill his fiduciary responsibility. IF you DO have the exclusive right to buy contract in place, speak with your attorney or a broker directly to see if you can get out of it based on breach of fiduciary duty.
Trust me , there are plenty of realtors out there that would want to do business with you the right way!
Investor · Warwick, RI · Member since 2015 · 137 posts · 100 votes
8y
@Alex Dem that's what i'm saying. The deposit should be what i'm comfortable with. I know peoples that put down $1.00 or $1000.00 Not 10-20k . I think he wants that amount up front to cover his commission! We do not have any exclusive right to buy signed at all. I have been using him because i knew him for a while and it dose not cost me anything on my end. But if hi is going to continue to make me put up this large amount, i guess he is costing me !!!!
Flipper/Rehabber · New Britain, CT · Member since 2017 · 80 posts · 28 votes
8y
@Bob Romano his commission is not paid from your deposit or your side of transaction; in majority of scenarios seller pays realtor fees.
Who knows what the agents' reasoning is. If he just wants to secure the transaction, he is acting from his interest , not yours.
Just make sure you disclose the hard money as well. This interaction has to be fair both ways. Besides,there is cost of money ( specifically hard money ) and you will have skin in the game no matter.