Trulia Community - Advice from neighbors and local experts

Find Your Community
We couldn't find that location. Please try again.
Get Expert Advice

All Locations : Nationwide Real Estate Advice

  • All702K
  • Local Info59K
  • Home Buying257K
  • Home Selling43K
  • Market Conditions26K

Activity 486,608
A few minutes ago
cfrlaw answered:
When you list your property with a real estate agent, it will contain a term which describes who gets the earnest money in the event of buyer default. The purpose of an earnest money deposit is to provide assurances to the seller that the buyer has a legitimate interest in the property. When a buyer submits a purchase agreement, it will state the conditions under which the buyer will lose the right to his/her earnest money deposit. If the buyer defaults he/she forfeits their earnest money deposit.

Once there is a forfeit, you look at your contract with the real estate agent to determine who gets the earnest money. In my opinion, the seller should get the earnest money because s/he is carrying the property and incurs expenses while waiting for the deal to close. If the deal falls through, the agent can still collect his/her commission on a second sale. Moreover, if the sale falls through because the agent did not do his job (for example the agent did not properly review an "all cash" buyer and found out that the buyer does not have the funds to close the deal), it seems unfair that the agent should share in the earnest money.

I actually think that allowing an agent to get any of the earnest money is a conflict of interest for the agent. They can make money by "tanking" the deals. I had a situation where the agent got 50% of the earnest money on a million dollar listing. They had two sellers walk away because of default. The agent then sold the house to the third buyer. The the agent walked away with their full commission and earnest money payment that was MORE than their commission. Meanwhile, the owner of the house carried the house for over a year waiting for a sale and seeing sales fall through for reasons relating to the shortcoming of the agent and the agent's review of the qualifications of the buyers.

I would recommend negotiating that the seller gets 100% of the earnest money. Alternatively, the agent should get no more than what they would get if they sold the property, typically 3% or 6%. Sales people do not get paid for failing to perform, neither should real estate sales people.
... more
0 votes 16 answers Share Flag
A few minutes ago
Yballard1028 asked:
filed 2 years ago and has been discharged
0 votes 0 Answers Share Flag
A few hours ago
Kmonty2470 asked:
I'm unable to drill down to neighborhoods that have rental within this school district. Please help
0 votes 0 Answers Share Flag
A few hours ago
Pete.davis23 asked:
Looking for fixer upper in south ms. Or handy man specials
0 votes 0 Answers Share Flag
A few hours ago
Dina asked:
Added features would be helpful term lease required and if single level units.
Thank you
0 votes 0 Answers Share Flag
A few hours ago
Isabelle answered:
A few hours ago
Rhonda Holt answered:
Hello, here in New York we use attorneys for real estate transactions and it is required that the sellers attorney deposit the buyers down payment into his or her separate escrow account, this is not the same as his or her business or personal account. I hope this answer helped you . ... more
0 votes 2 answers Share Flag
A few hours ago
Leighcr.cl asked:
I have a balance on some credit cards that I could get down before the approval and 110k in income when added to my wife's. Paid off 13 2 years early but have a few late payments on credit…
0 votes 0 Answers Share Flag
A few hours ago
Ross DiGiorgio answered:
In my opinion it is extra commission a real estate company charges. I do not charge an administration nor will I ever. I am well paid as a Realtor and I am still amazed, especially in this day of information, why a seller or buyer would ever hire a real estate agent who had such a charge. I have seen them range from $195-$995! That's not only ridiculous it's outrageous! ... more
0 votes 7 answers Share Flag
A few hours ago
Enickens34 asked:
A few hours ago
Renajoy312 asked:
... of our town. Any help fixing either of these would be greatly appreciated. Thank you very much in advance!
0 votes 0 Answers Share Flag
A few hours ago
R.A. answered:
The regime fees in Gatewood are the biggest problem with that subdivision IMO. Despite some very nice homes at attractive prices, we didn't bother to look at homes in Gatewood. Not paying that much for services we wouldn't use. ... more
0 votes 1 answer Share Flag
A few hours ago
R.A. answered:
Absolutely, but not many lenders like to do them. I am trying to get one now in SC. Expect a very long process: 60-90 days to close. The broker will take probably 30 days to do his/her part...then it's another 30-60 day process with the actual bank. Unfortunately the second part was not disclosed to me. I thought I was 95% done when actually it's more like halfway. ... more
0 votes 13 answers Share Flag
A few hours ago
R.A. answered:
fgmc.com --- 60 days to close AFTER broker submits appraisal, title search, credit -- pulled loan away from this outfit

switched to:
american financial resources, inc afrcorp.com I dug deep into the web and found a number to a help desk that the brokers use to discuss these loans with AFR, the guy said at least 30 days to close AFTER broker submits, waiting to see what they say... (and I thought that I was 95% done---nope, more like 50%

***VERY*** frustrating process, mine should be an "easy" one with 730 FICO and everything else top notch.... will not be speedy whatsoever, expect 60-90 days "IF" everybody is Johnny on the spot with doing their part...and good luck with that happening; the mortgage, appraisal, and title search business seems filled with people who have zero sense of urgency. (4/26/2017)
... more
0 votes 2 answers Share Flag
1 2 3 4 5 6 7 ...
Search Advice
Search