when do you want to open title once you sign the purchase contract with the motivated seller. I thought you oped title right after with thirty days to cloase and during that time is when you find your buyer, however, just read from another member that they suggest you don’t open title until you find your buyer. What do you tell your seller the reason why you havnt began escrow if you are waiting to find the buyer.
Hi,
Basically you should open escrow between you and your primary seller in one to two business days!
You are obligated by real estate contract law to open escrow when you have a signed contract for the sale of real property from seller to buyer to close within or by certain date!
You don’t tell the seller because you open escrow as agreed, you need to have a buyers list and you need to buy properties in area’s and of appropriate size your buyer is searching for! Your escrow should be as long as you can convince the seller to agree to, I always try to get at least 45 days but prefer 50 to 60 days to close, and I try to give myself about a third or a little more of this window for inspections and to remove contingencies!
This gives me 15 to 20 days roughly to come up with my buyer out of my buyers list and to get all the inspections done and remove contingencies / contract or assign my interests to my end buyer!
If you don’t have a buyers list how do you expect to find a buyer in 10 to 15 days (Remember even though you want a buyer with a mortgage approval your buyers lender needs 30 to 35 days to close there loan) if the average days on market in the neighborhood of your subject property is 25, 42, 63 or 97 days on market???
When you blindly seek a buyer why buy the home you just happen to have under contract, why not buy the one down the street, the one around the corner or the one in the next block??
When you buy properties from a buyers list you have at least one person seeking a 4 bedroom / 2 bath in “your town or your city USA” who wants to be in the “best education school district” and close to the “real convienant shopping center” which is near the “great kids activities” and “close to you or your spouses work”!
When you blindly seek a buyer you could find a 3 bedroom / 1.5 bath be in “wrong town or wrong city USA” that’s in the “wrong school district” and far away from “not quite adiquate shopping center” around the “very few kids activities” and a “one hour drive to you or your spouses work”!
Which house will sell better and be more of a success to you the investor??
GR
thats the same question i had before. my escrow guy said that we can open the escrow with $10 earnest money and they can postpone the processing of the documents until i have the end-buyer and the assignment is signed. once he received the assignment of contract and the additional earnest money which will come from my end-buyer, he will start processing all the documents and close it. the key here is to find a wholesaler-friendly escrow guy who knows the details of assignment.
i hope this helps.