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Updated almost 10 years ago,
Shortsale help!
hey guys.
I checked out a house that is in shortsale, i worked the numbers and found a point on which i believe it would be profitable to me. However i felt as a first flip it maybe a lot of work to take on. So i told the agent that its a lot of work and threw her a really low ball offer of 115k. She responded with lets see what happens. Now heres where my newbie self needs help in understanding.
She asked me to sign the binder which i understand.
Then she ask me to sign a sheet that states i would put down 20% at the signing of the contract if the banks accept your offer. I asked if it were earnest money and if so i'll cut her a check for 1000 while i get my inspection and contractors bids. Her broker than sent me an email saying i should at least put 10% down if the offer gets accepted.
My question is that the norm request 20% as earnest money especially since the it would be paid for in full at closing with the funding i would receive.
Thanks in advance