Updated over 16 years ago on . Most recent reply
Bank Wants 10K Earnest Money
My realtor told me that in rder to buy a reo property the bank wants 1oK in earnest money. The arv is $400k, and i will be offering 15ok. I told him the most I would offer is 2k. He said that the banks ask for 10k because they figure if you are buying with cash is shouldn't be a problem, or else they will think your a flake. Is this true?
Most Popular Reply
Depends on the deal. Depends on the market. If there's alot of action on the deal and the numbers are actually good....give them what they want.
In Houston, some of the good deals are attracting multiple offers. Hence, investors/buyers are bidding over the asking prices.
If they are just busting out from another transaction, they may be just bluffing. I just turned in a deal where they wanted $5,000 earnest. I acted like I didn't read it in the offer instructions and submitted the offer with $1,000 earnest......they took it.
Cash is King! If you're buying with cash...it's like Jerry McGuirre said or whatever that guy said....the one who was the football player in the movie..."show me the money Jerry...show me the money".
Just show them where the money is or where it's coming from. Not necessarily let them hold the money....lol. Keep your money in your pocket til the deal is done.
Everything is negotiable....