Listing agent is asking me $500 check to submit the short offer to bank? why is that and is it refundable? (incentive, sale)

[RickTucsonHomes]

Originally Posted by geethal

Thank you and listing agent is asking to make the check out to seller's name.

Red light, red light . Do not proceed. Please get your own buyers agent before you proceed any further. A buyers agent cost you nothing.

[SOON2BNSURPRISE]

We had to give an earnest money check as well. We are in escrow on a home currently. Our check, a cashiers check, was made out to the title company handling the deal, if I remember correctly. The home we are buying is bank owned and has been empty for a few months. Our agent deals with the sellers agent, the seller in this case being Chase Bank.

[RickTucsonHomes]

Originally Posted by SOON2BNSURPRISE

We had to give an earnest money check as well. We are in escrow on a home currently.Our check, a cashiers check, was made out to the title company handling the deal, if I remember correctly. The home we are buying is bank owned and has been empty for a few months. Our agent deals with the sellers agent, the seller in this case being Chase Bank.

Correct, this is the way it should be as opposed to this other nonsense the OP is talking about. Good luck with your new home!

[SOON2BNSURPRISE]

Originally Posted by RickTucsonHomes

Correct, this is the way it should be as opposed to this other nonsense the OP is talking about. Good luck with your new home!

Thank you. Not sure how you as an agent deal with all this stuff. Maybe because you do it often and maybe because your assisting those of us that don't do this every day. One thing I am sure of is that I don't want to do it again. Buying a home is one of those things that is both fun and frustrating. I am acquiring quite a few F words that I can use to describe the experience. LOL I would share others but this is not the forum for that. LOL

[AONE]

I would choose your title company and make the deposit there. remember Buyer controls title.... even if the seller pays for it.

Often an escrow isn't required until the bank agrees tot he offer in a short sale but that depends on the agents and banks involved. But at $500 that isn't a back breaker.

[nwihomes4sale]

I agree STOP and if you do not have your own agent get one or at least a real estate attorney. I know of no instance why there would EVER be a check written to the home owner.

I always write in the additional area earnest money to be submitted upon approval from bank.

[Touchette]

geethal,

Do you have an agent representing you? If you do, then have you asked your agent these questions? If you don't, I would suggest you get one.

As stated already, it is not common to write earnest money, or any other, checks to the Seller prior to closing. Even at closing, most everything goes through a closing and/or title agency. Your purchase agreement should specifically state all earnest money, or other, funds, who they should go to, and how they should be distributed in the even the PA is not agreed to or canceled.

Again, if you don't already have an agent, then you should get one. Alternatively, you need to do a lot more research on the home buying process before making any more offers.

[Ankhharu]

What State is this in?

[geethal]

Originally Posted by ankhharu

what state is this in?

ny

[jamies]

I don't know about NY, but when we buy foreclosures, shorts, or any sale. We provide a PHOTOCOPY of a company check, along with a bank statement showing ample funds.

The listing agent provides this to the bank. Then once the offer is accepted we have 24-72 hours to provide the actual deposit funds by Cert check - to the escrow company.

I bid on a lot of properties. If I had to have god knows who holding hundreds of thousands in earnest money funds, for posibly months on end in the case of shorts, I'd be broke, not to mention lose 0.9% interest.

PS - I personally don't like buyer agents. One more middleman to muck out the deal and dilute the commission. I prefer to deal with the listing agent, or the seller directly.