Getting Your Offer Accepted! Write an Offer with Strong Earnest Money (Part 7 in a Series)
The Denver real estate market is experiencing a shortage of homes for sale with an excess of buyers who are anxious to find a home before the interest rates get too high. This is good for home owners who are selling now, because they have the privilege of choice, who among the offers they receive get to be the Winning One.
When a buyer finds the house he wants, the way to get the offer accepted is to have the best offer, not just on price but on other factors as well.
Earnest Money is an Important Factor of the Purchase Contract
Earnest money is an amount of money put into the trust account until closing. Buyers render earnest money with the contract to prove their good faith. In turn the Seller takes his house off the market while the buyer does inspections and due diligence. If the buyer follows through with all the inspections, gets the loan and does not close on the house, the seller has the option to keep the earnest money.
Obviously the seller would like as much earnest money as possible and buyers prefer to put down as little as possible. Typically the earnest money desired by the seller is indicated in MLS Listing. Wise buyers will provide that amount of earnest money. If a buyer has good intentions to purchase the property and abide by the contract dates, there is no reason for the seller to keep the earnest money.
On the other hand, if a buyer is not prompt about contract dates or fails to apply and receive financing in time, earnest money can be at risk.
Increase Your Earnest Money
If you want to get the seller's attention, give more earnest money. Increase the amount to what you can afford, you are going to spend money for a downpayment so once your offer gets accepted the earnest money will be used for your downpayment. It's not costing you more to Up the Earnest, so do it!
Additional Suggestions on Earnest Funds
When you decide to purchase the home, give your buyer's agent a check for the earnest money. There is something to be said for being able to tell the seller's agent, "I have the earnest money in hand. I will drop it off at your office or title company!"
So many agents don't bother to get the earnest money until after the deal is signed. Having a check in hand gives you Clout! Clout comes by impressing the seller that you are ready, willing and able to complete the transaction on his house.
If you are a buyer or seller int he Metro Denver market who is getting ready to move, p ut my experience to work for you. I welcome your call.