OfflineHello folks,
I had a conversation with my agent yesterday and she explained to me that in order to submit the 27 offers that I have selected, I will need to provide 27 different checks for earnest money. All of the properties that I am making offers on are REOs and she says that the the banks will verify the check to make sure that the funds are legit once the offer has been accepted.
What I have been doing is using one check and making a copy of it simply for submission so I will avoid wasting multiple checks. When the offer is accepted, I will use a different check with the same amount to provide for earnest money. She says that it appears that more than one of my offers may be accepted and this will create a problem when more than one bank verifies the funds on a single check.
Regardless of her concern, she has submitted the offers anyway with the check copies but wants the different checks today. She says she is supposed to have the checks physically in her hand before submitting the offers.
Am I missing something here? I thought my plan was fine? I am not writing fake checks, the funds are there. Why is this a problem before the contract is ratified?
I do the same thing...send a copy of the same check! When offer is accepted I then give my Realtor the real one.
I don't see how two banks verifying if the funds are there will cause an issue. I've actually never even heard of that, how would they verify anyway, and what would the check # have to do with anything....
I would only give her the real check after the offer is accepted, if she doesn't like that, tell her "well maybe this isn't working out" and find another Realtor.
D
Don't Wish the Past, Create the Future! - DH
The only way the other dealers would ever find out is if more than one offer is excepted at a time and then it is very unlikly that both of them would hit the bank computer at the same time. Like D said, If your agent is working for you, you are the boss, and if more than one is excepted, she should be willing to call you in a hurry to get a new check. after all, its money in there pocket also. If they have a problem with this, then go elsewhere, politely. Never burn a bridge, for someday you may want to cross over it again.
erh
erh
No you only want one copy of EMD check that your REA will submit with all your offers. Only after you have a written agreement between you and Lender, do you turn in the REAL CHECK (make sure you write ESCROW on memo line) within 24 hours. When the Broker deposits your check in their escrow account they earn interest (which you don't get reimbursed) on the money in their escrow account! Do not go giving you REA 27 different checks! Only one EMD check copy is, all she needs, to submit with any offers that she sends out for you on your behalf. Please don't let her walk over you as well. Your the boss she works for you not the other way around.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
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The agent may be required by her Broker to have a check for each offer. Ask her to check with her Broker. I always asked for an earnest money check whenever I wrote an offer. After reading in this site, I asked my Broker what he required. I was told not to ask for a check unless the seller required it.
One other thing. I am seeing investors say that the agent works for them. Unless you have some unusual agreement with your agent, you are not paying them for their time. When an investor interviews an agent, the agent is also making a judgement as to wheather the investor will be a good business partner for them. The agent will search for and prequalify listings, pull comps, help determine value, provide current market information, prepare offers, negotiate contracts, work with title companies/lawyers to close deals, and protect the interests of the investor. When and if a deal does close, then, and only then do they get paid. They are not being paid by the investor, they are being paid by the seller. An agent is looking for a good business partner, that is knowledgable, has a good plan, and is able to perform. I believe the agent is going to see this relationship as a business partnership, not as a boss/employee relationship.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Hi,
alchristmann you said it the best i have heard,When it comes down to our team players.I think if you are going to run an REA all over town,Without getting paid...They deserve alot of respect!After all they are in it...To win it,Just like you.
Invest in yourself!
I appreciate all the responses so far and will ask my agent to find out if her Broker requires it. Regardless, I don't see why I need to submit different checks in order to make multiple offers when the offers are not ratified. I knew I wasn't crazy.
Al is absolulety correct, most people would not put in the hours a good realestate agent does for the pay. Everybody grumbles at the 6% but really very few agents ever get that much. It is divided in many different ways. I rarely put down earnest money, I usually note on the offer that X amount of earnest money will be provided upon a mutually accepted offer. Keep up the positive thoughts it will change your life.
Donna
Hi Donna. I was wondering if that has always worked for you? Rarely putting any EMD? When you have had to was it because they wouldn't except the note you placed in the offer stating that x amount of EM would be provided upon a mutually accepted offer? Originaly I was going to ask if one (copy of) check that was being submitted covered all 27 offers or was it the same copy for all of them? A little confused on that. If you could clear that up for also would much apriciate? I'm new and VERY eager to learn everything I can. Thank you
Barbara
Owen Properties, LLC