Need to make a deposit to seller agent office?

[Edward Shen]

Hi everyone,

So i am planning to offer on my first house and is working with a realtor. I wanted to make a offer on a 100k house with 60k (cause the inside is absolutely terrible and the seller is trying to sell based on the region being developed). My realtor asked me that i need an deposit amount to give to the other office agent. He suggested 5k to be enticing, though i feel that it is kind of high since we we will closing in cash anyway. I am confused on what this deposit is. Is this a down payment essentially? Also what if the seller did accept it and somehow we back out of it, Is this deposit gone? I never heard of a deposit to the agent office, maybe is because i am new.

If i can get clarify that be great. Thanks.

[Russell Brazil]

Originally posted by @Edward Shen:

@Russell Brazil

i guess my question is, why does $1500 make you not interested if you will be settling in a month. Also why do you want to just tied up the house for not selling? The thing is also that the house been on the market for close to 3 months now and apparently didn’t had much offer... I don’t see why people will want to put down a down payment and just not buy something to tied down a house. You mostly just lose your money.

 First....if youre talking about a month close on a cash transaction, that also screams scam to me and is another indicator it isnt closing.  Cash should be closing in a week, maybe less.

Low EMD, lowball offer, 30 day close.....everything about that screams its a wholesaler and not a legit buyer.