Seller asking for non refundable escrow deposit

4 Replies

Hello Fellow BP Friends

The seller is asking for a non refundable escrow deposit of 3k as they feel we will try to wholesale and it may not work out. 

I have full intent of purchasing the deal if the inspection and appraisal goes well. How do I strategize the deal?

Thanks 

Hi @Sameer Kh ,

You can give a 11 day period before the money goes hard (after inspections). For instance offer the 3K that becomes non refundable after 11 days (7 days inspection, 2 days to review results and 2 days to negotiate repairs. You could also add a clause that the property has to appraise at XYZ or the purchase price is = to appraisal. 

Just some thoughts and good luck!

Mike Cumbie, Real Estate Agent in NY (#10401285310)

Usually showing proof of funds or having a reference (title company) usually does the trick for me. I tend to be more open with the nervous sellers that think I have other intentions.  

I would talk to them more, find out what the issue really is. Once your moving through title work client know they are going to get paid. If they still want the deposit, ask for a lower price, they get something you get something. 

You have to pay to play.  Remember - you enter a contract with them, they can not sell it to anyone else.  You can't expect to tie up someone's property and not compensate them for lost opportunities if you walk away. 

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