I have a question about submitting an offer on a home.?

Question

I have a questions regarding the submission of an offer on a home. I want to make an offer with a deposit. When is the deposit, cashed in? when the offer is accepted? when escrow opens? any help would be greatly appreaciated thanks.

Answer 1

When you make an offer you put in a deposit called earnest money. It is usually between $500 and 1% of the value of what you are buying. The seller's real estate agent will put it in escrow to be used at the closing and the check can be deposited immediately after you give it to them (they generally won't cash it until everyone has agreed to the contract and past experience says it takes days or weeks, but it doesn't have to).

No money changes hands until the offer has been accepted by both parties.

Answer 2

A deposit shows the seller yo are very interested in the home and would be held by your agent (assuming you have a buyers agent) until closing when it would be applied to closing costs in most cases. You need to give a time line on your offer-say 48 to 72 hours. It should be a yes or no or counter, not setting the offer aside to see what else they might get in in the next month-but if you don't give a time frame for the offer that is what they may do. From the acceptance of the offer until closing can take anywhere from 30 days to 90 days. Depends on the terms of your offer and if the home is occupied. But typically since the deposit is more of a gesture to show interest you don't need to put out more than $1,000. Good luck.

Answer 3

You don't need to make a deposit with your offer. If you agree to a price, it is common to put up earnest money, which essentially makes the contract binding (the old offer-acceptance-consideration triad). Essentially, the check can be "cashed" right away (so you need to have money in the bank to cover it) though it is usually held in escrow by the realtor and released to the seller only at closing.

Answer 4

The check isn't deposited until the offer is accepted.