im interesting in sending a backup offer on a short sell house in Miami fl 33161.but I was wondering is bitwise to only put $1k for the initial escrow
Please help me
(0) | asked by: Karlile Vernus | share | 18 months ago | Report
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Viewing Answers 1 - 9 of 9
It is typically best to put down as much as possible, it makes it easier to negotiate. Many like to go back and forth a lot, but if the buyers are serious with their offer I believe they should put down as much as they can and meet every deadline.
By putting a large deposit into escrow, it will show you are serious about following through with the purchase.
You do not need an escrow until you know your offer is accepted.
A larger deposit shows the buyer commitment to close the deal. There are properties that are not short sale and you can close faster. Call me for information Karym Casas
Hello Ms. Vernus, Personally I don't collect a high deposit on a short sale back up, due to the length of time a short sale sometimes takes. You can add a larger deposit within one day of your contract being accepted, along with other short sale addendum's mentioned by other commentators.
Good Morning Ms. Vernus, Your desire to place a back up offer on this property is a good idea, however, you may wish to consider offering a bit more as a deposit, which will let the seller know that you are serious. I have found that many sellers in this circumstance are open to accepting back up offers, as in many cases the original buyer does lose patience in waiting for the short sale to be approved. I would also suggest that you have your realtor check on the status of where the bank is in the foreclosure process, given often times the short sale department and foreclosure department do not communicate. The status of the foreclosure can also determine if it is worth you pursuing this property. There are several ways in which your realtor can set up your offer, so that you don't have to do property inspections, etc until such time as you are in first position and the bank has issued the approval of the short sale. NO sense spending any funds until that short sale approval comes in. Please feel free to contact me if you have any additional questions. Good luck on your home search.
Good Morning Ms. Vernus, You ask a very good question. For a back up offer you may wish to place a bit more of an escrow deposit, but of course that also depends on the balance of your terms in your offer. When a comes to a short sale, I have found that sellers will welcome a back up offer given the length of time it sometimes takes in getting a short sale approved. The current buyer under contract may get tired of waiting, so you would then be in a position to move into the first position. The other thing you will want to check into is to see how far along the bank is with the foreclosure proceedings. Normally, the department that handles the foreclosure does not keep the short sale department informed of the status. You can have your realtor check into the status of the pending foreclosure, it may be at the beginning, or the bank can already have a foreclosure sale date set, which does have the ability to affect the short sale. Feel free to let me know if you have any additional questions. I have been working with buyers and sellers for the past 8 years and I am very familiar with how the process works. Good luck in your home search.
I am the Broker and Owner of my Real Estate firm List Realty and your question of only putting 1k down as good faith is a good one. In every deal both parties want to know that they are committed to the deal and have "skin" in the game. If all things were equal; price , terms, inspections etc and you were competing with another buyer who put 10k in escrow, they may have a better chance. In my professional opinion 1k total on the line is not something that appears to be very serious. Ill tell you what I recommend to my buyers that has worked very well. I suggest 2k either accompanying offer or within 3 days of acceptance(Section 2(a) of FAR/BAR AS-IS). Then 3k additional after 10 days (Section 2(b) of FAR/BAR AS-IS. This gives you time to do your inspections and then show more good faith. Sellers have been very responsive to that technique. Hopes this helps
Ahh Miami Springs, an area where I've worked extensively. You're picking a great area and I hope that you get the house! Your offer should include a short sale addendum which outlines when the timelines will begin - you can select that you want deposit and inspections to begin after short sale approval is delivered. You should also include a back-up addendum which says that your offer is subject to the expiration of the current offer. Opening escrow now won't make short sale approval or the expiration of the prior offer to happen any sooner. However if the listing agent and seller insist upon it as a show of good faith or to make your offer look more serious than others that may come in then it couldn't hurt.
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