All Forum Posts by: Nile Reavis

@Nile Reavisyes exactly. If your offer gets accepted, then the contract will be signed by both parties, and then you will give your earnest money deposit. As long as you back out before your contingency period is over, you will not lose your earnest money deposit. 

In my experience, the contingency period is usually 10 days, and common contingencies include pending the buyer obtaining financing as well as pending inspection. However, you can add any contingencies you want. For example, pending the appraisal coming back high enough to satisfy you. 

Just make sure you read the contract and fully understand it before signing it. That way you can make sure to decide to back out or move forward while you still legally can. Also, if you want any special contingencies or terms included in the contract, make sure they get put in there as well before it gets signed. 

@Nile Reavis ... Your doing the right thing by bringing your questions here.... BP is a wonderful tool in that sense when something might not be a law or rule but is somewhat of a common practice.... best of luck to you.

I wouldn't provide a copy of an EM check until the seller accepted my offer verbally. I put in plenty of offers and I don't think I've ever been asked to produce an EM check or copy thereof until the seller has at least verbally agreed to accept my number. If I were to have to get EM checks to submit every offer (most of which don't get accepted), my bank would disown me - literally.

Because then I'd have to go back to the bank and return the cashier's checks.

I would tell your realtor to tell the seller that you will have no problem producing the cashier's check within 24 hours provided the seller verbally agrees to your offer price. If not, you're not wasting your time nor the bank's to come up with a cashier's check just to put in the offer.

I've personally never seen that in all the years I've been doing this. And I would guess I'm well over 300 or 400 offers.

@Nile Reavis ... @Larry Turowski and @Michael Noto know what they are talking about here and this is all 100% accurate (in my experience).... there is no requirement for a deposit when an offer to purchase is placed, however, in my experience a photo of an earnest money deposit check ( I send a picture of a check for $1,000 made out to the asset manager) along with a proof of funds (which is just a true and verified statement from my bank) that shows you have the funds to cover the down payment if using financing, or the whole purchase price if its a cash sale does a great job of showing you are serious.... look at it from the sellers standpoint, if you had two offers in front of you and both are for the same amount what looks better? an offer.... or an offer with a deposit and proof the potential buyer can move forward with the purchase.... There's no money out of pocket unless the offer is accepted at which time you will then have to make good on the deposit and send an actual check.... but this is all pretty standard.....good luck!

@Michael Spittler thank you so much for your response. The way you've  explained things, it makes perfect sense to me now. I will absolutely send the earnest money deposit with my offer. Thanks again for such thorough feedback.

@Nile Reavis 100% normal.  This is called an "earnest deposit."  It shows that you are earnest in your intent to buy and creates a binding contract.  Also, it is forfeited if all contingencies are met but you fail to purchase.