Just a novice but eager to flip . How easy or difficult is it to get seller to agree to option contract. How much are earnest payment is needed to hold house for a month? ???
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Howdy Cyndindmoney:
It has gotten harder to get properties under contract. A lot of sellers especially banks and mortgage companies want to see proof that you can close the deal. They want preapproval letters from mortgage companies or a bank statement or some other proof of funds available to close. Some will even add to the contract that this contract is not assignable. You can still get deals done but you will need to be able to close if you can not flip the property in the 30 days or lose the earnest money.
Most sellers want at least $500 as earnest money. Some are even asking $1000 and even non refundable too. Most of these are being flipped also however. The last two deals I did I only used $100 each. I have seen offers with only $10. I personally use $100 to start. Most Realtors put $500 almost automatically unless it is a larger home. It is all negotiable between the buyer and seller. If you give in and add more to the earnest money you may want to counter and ask for a longer time to close. Always ask for something if you give in on something else.