Earnest Money

9 Replies

Is it customary for a real estate agent to require 10% down on a cash deal? And then ask for $100 Document Holding Fee?

@Fred Mittel The document fee is strange, but I have seen foreclosures require a larger than normal earnest money deposit if the buyer was paying cash.

@Dawn Brenengen Thanks for your input. We are trying to get this business started. Every time we think we got it right, somebody is changing the rules or making harder to get the deal done. Almost as if they don't want the property to be sold.

Thanks Again!

@Fred Mittel when you working with agents on the MLS they hear "Cash offers" offers all the time, so the proff will be made as for your EMD. Its almost like going to an auction. Those with money are bidding and those that don't have it will watch the process.

I would suggest finding properties off the MLS, when just starting out and you will not have to worry about such large EMDs. The largest EMD I have given to the a seller ( rather my title co.) is 1k, and the smallest amount is $0.

Don't give up...and when you are thinking about it. Always remember why you wanted to get started!

10% earnest money seems to be standard for Fannie Mae properties.

Hi Dawn I just started and my first property we had to put down $1k  earnest money and it's a bank owned property. 

Originally posted by @Kemba Roberts :

Hi Dawn I just started and my first property we had to put down $1k  earnest money and it's a bank owned property. 

 Bank owned is different than Fannie Mae owned.

Originally posted by @Dawn Anastasi :
Originally posted by @Kemba Roberts:

Hi Dawn I just started and my first property we had to put down $1k  earnest money and it's a bank owned property. 

 Bank owned is different than Fannie Mae owned.

 Oh ok. I didn't know that. So that's good enough. Is there any particular reason for that? 

10% is common on REOs.

E.M. keeps away those that aren't serious buyers.

Not sure what's going on with the doc fee.

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