Home Buying in 78758>Question Details

Brian, Home Buyer in 32707

I am buying a short sale in florida should i put a good faith deposit of 1,000 dollars at contact.

Asked by Brian, 32707 Mon Jan 30, 2012

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Betina Foreman’s answer
Dear Brian,
I would contact a Florida Realtor or Broker and see what is considered normal in that market. The Austin home market is very differant from Florida. Austin does not have that many short sales or foreclosures and Florida is a very distressed market from what I have read. I wish you luck on the purchase.
0 votes Thank Flag Link Sun Feb 5, 2012
BEST ANSWER
A lot depends on the price of the property you're trying to acquire. If it's a $40K property, I wouldn't offer that amount of earnest money. If it's a $250K property, I'd offer more. However, If I were buying a short-sale, I would provide $100 earnest money at time of contract and another $900 at the time the lender gives written acceptance of the contract terms. Otherwise you're risking far too much money for something that will likely take many months to close, if it ever closes at all. Most agents will ask for the full amount of earnest money at the time of contract simply because that's the way it's always done, but there's no way I would risk that much up front as your chances of moving on to another property are quite high.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Mon Jan 30, 2012
You're soliciting the opinion of Realtors in Austin, Texas, so here in Austin, it's 1%. If you're buying a home in Florida, make sure you're using a Realtor that knows the market and all of the contractual procedures. Best of luck!
0 votes Thank Flag Link Mon Jan 30, 2012
last one I did the buyer put up his $1,000 earnest money AFTER the bank accpeted his offer. I would put up $1 if I was you and another $999 when the lender agrees to your offer, which may be 3-4 or even more months.
0 votes Thank Flag Link Mon Jan 30, 2012
It is always good to show you are invested in the purchase, however, short sales are time consuming and can take a long while. Unless the seller's lender requires a specific % I always recommend my client put as little as possible down as earnest money. Something shows you have a valied interest but too much can just simply tieyour money up for longer than you may want it to if the sell does not go thru which does happen at times. I say until you walk away from the closing table with keys in hand and documents saying you closed it is not a done deal. Good luck, hope this helps.

Warmest Regards,

Vanessa Nunez
VOX Real Estate, LLC
http://www.escapesomewhere.com
512-750-5716
vanessanunez.realtor@gmail.com
0 votes Thank Flag Link Mon Jan 30, 2012
Typically the lender doesn't care about how much earnest money is but down because you can walk away up until the day of closing anyway. I just closed on one where my client only put up $500 on a $200,000 property. Also, keep in mind the seller is not allowed to receive any funds.....including the typical $100 for option period (in state of Texas anyway) so don't make out any checks to seller. Hope you have representation as stated before. You should be working with an agent that is a short sale expert. For example, you might be told that "X" is the amount that lender will accept and not a penny less. You can usually still get it for atleast a few thousand less. Also, lenders normally require a preliminary HUD be prepared and submitted with any offer. Are you ready to take all this on without representation? Please tell me you are working with an agent that is VERY experienced with short sales!

Tom Hess
Real Estate Broker/PLR
Certified ECO Broker
Cell: (512) 567-8522
0 votes Thank Flag Link Mon Jan 30, 2012
You mean earnest money. Put down as little as possible because short sales take for ever and you don't want your money tied up. But, as the previous response mentioned, why don't you get advice from your agent? Do not buy a property, especially a short sale, without having representation!
0 votes Thank Flag Link Mon Jan 30, 2012
1. You have this posted in Austin Texas
2. Deposit for short sale? Do you mean escrow/ earnest money ?
3. Each property stands alone based on requirements your buyers agent should be assisting you with all the lender specifications.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Mon Jan 30, 2012
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