Ok, well I thought I found a good property until I had the inspection done. Luckily I found someone that didn’t charge me for the inspection after he found a major defect in just 10-20 minutes.
Either way, I paid 500 dollars earnest money to the Title Company with an option out clause($25) in case something like this happened. The clause gives me 10 days to get out of the contract for whatever reason.
Here is the situation:
I have faxed over the request for earnest money to the seller. My real estate broker hasn’t been able to contact the seller… I don’t know what is going on, but I don’t like having $500 tied up, when I could use it for another contract. Is this something that happens frequently? Are the sellers trying to pull a fast one? My broker has told me as long as I have signed and dated the request, everything will be fine.
Is there a way to get a contract on a home without paying earnest money until the inspection is done?
On a sidenote…I found a foreclosure that I would like to purchase. It is way below market value (Va Foreclosure) in a good neighborhood. I was told by another real estate broker that I would need to pay more than the asking price in order to win the bid. Could this be a possiblity, or just a way for the broker to get more money? I was under the impression that I should never pay more than the asking price or market value(somewhere around 70% of market value minus repairs). I stepped away from the deal when the broker asked for a personal check made out to him for the earnest money… sigh There is no way in hell I would do that. Did I avoid a scam or am I being a little to cautious? I am thinking about trying to make an offer on the home. The asking price is in the 50’s and the market value is in the 80-90 range. :brow (I was told I would need to bid in the high 60’s to win)
I definetly need to start slow. It seems like there are plenty people out there ready to screw you over. :roll: