earnest monies with offer ?????

Question

Michael Gessner · Answer

Thank you everyone for your responses, so I reached out to my attorney yesterday, he reached out to my agent, She explained to him from what he told me their has been multiple excepted offer on the property which all fell through on their end. Im also going against another individual whose going in with cash, she felt by me providing earnest monies in full amount will give me a stronger foot hold and shows im very serious about the property. I feel now more comfortable and feel she is looking out for my best interest as I wanted to go 15k higher on my offer she told me not to and stay where I am. Hopefully this is the case. The only reason I chose to use her on this deal, I went and looked at this property a year ago and didn't jump on it with her, I wasn't ready, she called me the other day and told me get an offer in, she is heavy in the reo listings so I didn't want to jeopardize any future listings with her, ive ran the comps several times and they appear to be exactly whats shes putting an arv on this property for, so im feeling a bit more comfortable. but time will tell. I sent a copy of my check not the actual check and it is made out to my attorney. I just hope this property works out, looks like so far this will be a very good deal, nothing like I have seen in a long time

Toshia Booker-Blakeley · Answer

It can get a little touchy when the Listing Agent is also representing the buyers agent or also known as Dual Agency. Fiduciary responsibility is really important when it comes to this type of situation. I would recommend seeking another agent to represent you just to ensure your best interest is adhered to. Our standard EM is 1,000 submitted with the offer as consideration. You can submit more which generally shows you are a serious buyer and serious about purchasing the home. Attorneys normally do not get involved until there's an executed contract. Hope this help :-)

Brian Pulaski · Answer

I have made quite a few offers here in upstate NY. I have never had to submit an EMD with an offer. My experience here is offers are submitted on a binder. The seller gets this, reviews and then if they accept, their lawyer drafts and sends a contract. The EMD is submitted with this signed contract. I have made 15 offers, I have only needed one check for the house they accepted my offer and we went under contract.

Russell Brazil · Answer

Earnest money as part of an offer is pretty much standard everywhere as far as I am aware

Sergiu Ionita · Answer

@Michael Gessner 5% is a lot of earnest money! I recommend my clients put up 1%-2%. I usually have them turn in earnest money up to 2 days after the contract goes binding and the earnest money is always held in my office or with my closing attorney. Never work with an agent who is representing the other side. They do not have your best interest in mind.