Profile picture for knickknack

Making an offer - do I have to pay for anything?

When you make an offer on a house for the first time, do you have to pay for anything right away?
  • December 31 2008 - New York
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Answers (6)

Hi Knickknack,  No, but it is customary to make the offer with an amount of Escrow attached.  The amount varries from area to area anywhere from $100 up to 10% of the offered price.

Escrow money is yours and normaly stays yours until closing to protect the seller if you should cancel the contract in a way not allowed by the purchase and sale agreement.

Good Luck!

  • December 31 2008
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To make an offer, you will need:
A completed Real Estate Contract (also known as an Offer To Purchase),
A Letter of Pre Approval
and an Earnest Money Deposit.

The Earnest Money Deposit (EMD) is usually 1% of the offered purchase price. REO's will often require 3 - 5%.

If your offer is accepted, you begin the Inspection Period as defined within the contract. Payment for inspections are often deferred until closing.

Next is the Resolution of Unacceptable Conditions.

Once all parties come to terms and sign and date the contract in its entirety, including all addenda, your agent will arrange the closing date and time for you. At closing, you will need to bring the amount on the HUD-1 Final Settlement Statement. Prior to receiving this, your agent will go over the Buyer's Estimated Expense Worksheet with you so that you can plan for closing.
  • December 31 2008
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Absolutely not. However you will need a check as evidence for a good faith deposit to accompany your offer to purchase. This deposit is uncashed until initial negotiations are completed. Once your offer is accepted, your check must be deposited with the escrow holder within 3 business days and will be applied towards the balance of the purchase price.
  • December 31 2008
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Profile picture for sunnyview
Nope not a dime. However, as the others have said, usually a "good faith deposit" is submitted with your offer. the amount of the deposit depends largely on the custom in your local area and the purchase price itself. This deposit will be fully refunded if your offer is not accepted by the seller and is also refunded if your inspection is not satisfactory and you cancel your offer.
  • January 01 2009
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Profile picture for dcyn720
Is it normal for your broker to make an offer for you without you seeing or signing any papers and without any earnest money deposit? The property in question would be a bank owned property that is currently taking offers. My broker told me he submitted an offer for me but i never saw any paperwork.
  • May 13 2009
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In reality you may offer as little or as much as you like to have your offer considered for review...I would never suggest to anyone to submit an offer without EMD...if my buyer isn't willing to write a check for consideration when submitting their offer... why should I be willing to write up an offer?  The greater the amount of the EMD the greater the interest the buyer has in the property.  
  • May 14 2009
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