OfflineDG Fam,
Question today is how much time should you allow yourself to get earnest money from the end buyer to pay the seller? If it takes too long wouldn't the deal go dead in the water? And how can you determine the amount when dealing with an agent and MLS listings?
Bernard
Douglasville, GA
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Hi Bernard,
I would say as soon as possible to get the money, probably within 48 hours. Your best bet is to pay the EM deposit yourself so you can lock up the property, and then market to get reimbursed. That way you don't have to worry about the deal going dead - you're in control.
For MLS, just negotiate the lowest amount possible. It is often customary for a $500 or $1,000 deposit, but again, negotiate. If it's an REO listed, the bank will be more firm for the amount required, so that's why some people say FSBO is easier because you're working directly with a motivated seller.
Good luck!
- Tom
So basically, I will most likely come out of pocket for the earnest money with MLS props? I know I can negotiate something very small on off market props but unless I find a buyer within a 48-72 hour window after I have the prop under contract I will have to pay the earnest money? What is the window to get my earnest money reimbursed if the deal doesn't go thru?
Bernard
The goal is to have your buyers lined up ahead of time and then locking up the type of property your buyers are interested in. Usually you can't lose your earnest money until the inspection period expires.