I sent in an offer, and the realtor understands that I’m using hard cash (although I am really looking to find a cash buyer)…She told me that I must have a minimum of $5000 for the bank to even consider giving me a contract, and she went on to say that the $5000 is not an EMD but a down payment…
How can I structure this to get the contract, without producing the $5000.
I know I can bring in a cash buyer, but it is possible he can take the deal from me.
Asking $225,000
Offer 165,500
DP $5000
Unless the bank is financing the deal for you, the 5k is most likely what they are requiring for an earnest deposit. Maybe the realtor has her terms confused?
The banks can ask for as much as they want as an earnest money deposit. They want to make sure you are a serious buyer and are not going to just put the deal under contract and then walk away if you don’t find a buyer. Many of them ask for larger EMDs to weed out the tire kickers.
You can always counter back with less EMD and see what they say. It’s all part of the negotiation process.
Steph
Read post “earnest money”.I’d recomend putting up the $500 then more after all your contengencies are met.