Made an offer for a property in Sanford yesterday and the seller countered which was expected. However, he also disclosed that he is a licensed agent and said he would put that in an amended offer/contract. We're not thinking this is a big deal. However, he also asked to increase the escrow deposit from $2k to $5k.
I'm assuming he wants to increase it because the PoF I provided is in a foreign currency. Is this a normal occurrence, has anyone here had a similar experience? I don't really have much of an issue increasing the EMD since I'll transfer those funds from my FL bank and the bank charges the same, but I thought it was a bit of an odd confluence of events.
@Martin Taylor They may feel that $2K isn't enough for a deposit. I can't see having a higher deposit for people out of state. I could possibly see it for international buyers.
A licensed real estate professional must disclose this if they are buying or selling their own real estate. They are held to a higher standard. And I would be asking for a slightly higher escrow deposit for anyone out of the country, so I don't think this is strange. Do you have representation? It's always best to have someone looking out for you .... a seller (who is also an agent) will not do that. Good luck!
@Martin Taylor It's fairly common for sellers to counter with an increased EMD, especially if the seller is an agent. A $5k EMD isn't unheard of. Reasons for an increase in EMD could be based on on the price/terms of the contract. What is the purchase price of the home? What contingencies are in the contract? At the end of the day, as long as you adhere to the deadlines in the contract (if you have an inspection period, etc) or are sure about moving forward then the EMD amount shouldn't be a cause for concern as long as it is within reason.
@Martin Taylor are you purchasing the property in cash? Did they request proof of funds?
I haven't really seen this, each person's preferences are different. I think most people would go by a 1% EMD rule or expectation. Just like anything, it is ALL negotiable.
@charles carillo I am purchasing in cash and provided PoF but not in USD. I'm OK with paying extra EMD, the cost to transfer from my bank in FL will be the same regardless. I was curious if buyers outside of the US are treated differently and if that perception is why he asked to increase it.
Hey @Martin Taylor
Your suspicions are probably correct. The agent probably saw the proof of funds and wanted a little more security. The honest truth is it does not really change much.
It could also be the seller's personal preference to ask for a higher EMD from cash offers. I have seen some sellers request $5000 minimum deposits especially for cash deals.