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"The sky is falling" crowd will be doing that even when house prices dramatically rise. Cuz that's what they do...
I do think most of them lost their homes and wanted to get back in but can't qualify at the moment. Those who lived here so long obviously knowing this is a deal of a life time.
One of the most annoying things to me is that "buyers" can make an offer with no money attached. I make an honest offer, which I would gladly have attached 10% to and someone trying to kick up the price outbids me with a "Donald Duck" offer. Buyers will put in bids on numerous properties trying to get one and driving up prices. At least when a Used Dealer sells cars at an unbelievable price he has to advertise "one at this price".
When an offer is submitted, the agent attaches a copy of the earnest money check which s/he is holding. When a contract is agreed on and signed by both buyer and seller, the agent must deposit the check with the title company right away.
We can't open escrow and deposit a earnest money check with an offer. We must have a signed contract in order to open escrow and deposit the check.
The amount of the earnest money will normally not affect the price the seller will accept. However, a higher earnest money does show the buyer is probably serious. A 1-2% earnest money deposit is customary.
Any time there is competition for a property, and multiple offers are happening, it isn't uncommon for buyers to put in multiple offers. However, they must be careful so they don't buy two houses at once that they cannot afford. And the agent has to be careful also, about proper disclosures.
Sellers will try and hold back one offer in hopes of getting a higher offer, so buyers need to protect themselves. That's why some are making multiple offers.
Buyers weren't complaining before when there were plenty of homes to choose from, and they could negotiate a lower price. Now the tide has turned, at lease for the time being. The sellers are in control.
It makes me work much harder to get one contract, but I can't complain. That's part of the job.
One of the most annoying things to me is that "buyers" can make an offer with no money attached. I make an honest offer, which I would gladly have attached 10% to and someone trying to kick up the price outbids me with a "Donald Duck" offer. Buyers will put in bids on numerous properties trying to get one and driving up prices. At least when a Used Dealer sells cars at an unbelievable price he has to advertise "one at this price".
When this does happen, the bank will want you to come back with your highest and best. Keep firm on your price if you are willing to buy it and you can close. In this environment you need to have more than one bid out there. Just make sure you can get out of the others if one indeed comes through. For example, A bank will take a little bit lower offer if it is a cash sale as opposed to someone who needs financing.
Yes prices are being driven up because there are alot of able and willing buyers out there.
When an offer is submitted, the agent attaches a copy of the earnest money check which s/he is holding. When a contract is agreed on and signed by both buyer and seller, the agent must deposit the check with the title company right away.
We can't open escrow and deposit a earnest money check with an offer. We must have a signed contract in order to open escrow and deposit the check.
The amount of the earnest money will normally not affect the price the seller will accept. However, a higher earnest money does show the buyer is probably serious. A 1-2% earnest money deposit is customary.
Any time there is competition for a property, and multiple offers are happening, it isn't uncommon for buyers to put in multiple offers. However, they must be careful so they don't buy two houses at once that they cannot afford. And the agent has to be careful also, about proper disclosures.
Sellers will try and hold back one offer in hopes of getting a higher offer, so buyers need to protect themselves. That's why some are making multiple offers.
Buyers weren't complaining before when there were plenty of homes to choose from, and they could negotiate a lower price. Now the tide has turned, at lease for the time being. The sellers are in control.
It makes me work much harder to get one contract, but I can't complain. That's part of the job.
I just submitted an offer with NO EARNEST MONEY, entirely by computer. I was told that if the offer was accepted I would have ten days to submit the deposit by wire. That means that in the real world people can submit hundreds of offers without putting a dime down. Sellers who want to inflate a price can have Donald Duck submit an offer and then tell the unsuspecting public they have an offer of $XXXXXX. I haven't noticed this outside the valley but buying Real Estate in Maricopa County is scary
I just submitted an offer with NO EARNEST MONEY, entirely by computer. I was told that if the offer was accepted I would have ten days to submit the deposit by wire. That means that in the real world people can submit hundreds of offers without putting a dime down. Sellers who want to inflate a price can have Donald Duck submit an offer and then tell the unsuspecting public they have an offer of $XXXXXX. I haven't noticed this outside the valley but buying Real Estate in Maricopa County is scary
I don't know who you submitted an offer with.
But when submitting an offer through a Realtor, the Realtor must submit a copy of the earnest money check with the offer. When the offer is accepted, then the agent must deposit the earnest money and open escrow, usually the next business day.
No one is required to, and no one is going to, deposit earnest money in escrow for every offer they make. It's only required when there is a contract. I think most states are the same.
In AZ, a sellers agent cannot disclose the price or terms of an offer without written permission from the seller.
If an agent states that s/he has multiple offers, then s/he had better have multiple written offers. The buyers agent has the right to ask if the other offer(s) is from within the sellers agents office.
If an agent states there are multiple offers and there isn't, that agent can get into deep trouble.
I have not run into a situation yet where I doubted that there was actually another offer when the other agent told me there was.
But when submitting an offer through a Realtor, the Realtor must submit a copy of the earnest money check with the offer. When the offer is accepted, then the agent must deposit the earnest money and open escrow, usually the next business day.
No one is required to, and no one is going to, deposit earnest money in escrow for every offer they make. It's only required when there is a contract. I think most states are the same.
In AZ, a sellers agent cannot disclose the price or terms of an offer without written permission from the seller.
If an agent states that s/he has multiple offers, then s/he had better have multiple written offers. The buyers agent has the right to ask if the other offer(s) is from within the sellers agents office.
If an agent states there are multiple offers and there isn't, that agent can get into deep trouble.
I have not run into a situation yet where I doubted that there was actually another offer when the other agent told me there was.
WestUSA Realty, according to them, that is the way things are done in the information age. I review initial and sign on electrosign and it is submitted to the seller electronically. Could be all done in five minutes.
Talking to others that is the way things are done these days. Asking for paper would slow their process down by days and the place would be sold before they ever got my offer.
Seems to me you information is more what things should be than the way they are
...But when submitting an offer through a Realtor, the Realtor must submit a copy of the earnest money check with the offer. When the offer is accepted, then the agent must deposit the earnest money and open escrow, usually the next business day. ...
Or, make arrangements for alternative delivery of the EM by mutual agreement in the accepted contract, such as by wire.
Submitting a copy of the check is generally expected and sometimes demanded by the listing agent, but not required in the contract.
WestUSA Realty, according to them, that is the way things are done in the information age. I review initial and sign on electrosign and it is submitted to the seller electronically. Could be all done in five minutes.
Talking to others that is the way things are done these days. Asking for paper would slow their process down by days and the place would be sold before they ever got my offer.
Seems to me you information is more what things should be than the way they are
We're really talking about two different things. You're talking about signing and submitting documents electronically, which I do and most other Realtors do also. I've been using Docusign for a long time.
However, the banks do not accept electronic signatures. They will only accept wet signatures, except in rare cases.
I also have an online transaction software so I can access my clients accounts anywhere, and do everything electronically. So I am up on the information age. If it weren't for the banks not accepting wet signatures most of today's Realtors could be completely paperless.
You may be under a little misunderstanding about the 10 days to submit earnest money. If you'll look at the Purchase Contract Section 8n it states that upon acceptance of the offer, the earnest money will be deposited with the Escrow company, or the Brokers Trust Account. While it doesn't state it there, most brokers will require it to be deposited within 24-48 hours, and usually the next business day, and escrow opened.
Once there is an accepted contract then there is 10 days (unless negotiated differently) due diligence period to do all your inspections, but not 10 days before depositing the earnest money check.
The rest of my discussion was on Arizona Dept of Real Estate rules and laws. Those are AZ requirements. An agent cannot disclose the price and terms of another offer unless s/he has written permission from the seller.
They cannot tell you they have multiple offers if they haven't. That violates the law as well as the code of ethics. (All parties to the contract must be treated with fairness and honesty)
Quote:
Quote per rjrcm: Or, make arrangements for alternative delivery of the EM by mutual agreement in the accepted contract, such as by wire. Submitting a copy of the check is generally expected and sometimes demanded by the listing agent, but not required in the contract.
rjrcm is correct.
Also note in secein 8n that it states: ..."earnest money has been received by Broker named in 8r"... That is saying that the buyer has provided the broker with the earnest money at the time of signing the contract. As rjrcm states, an alternate method can be used, and that would be spelled out in the Additional Terms so the seller can agree. This works well in the case of an out of state buyer.
We're really talking about two different things. You're talking about signing and submitting documents electronically, which I do and most other Realtors do also. I've been using Docusign for a long time.
However, the banks do not accept electronic signatures. They will only accept wet signatures, except in rare cases.
I also have an online transaction software so I can access my clients accounts anywhere, and do everything electronically. So I am up on the information age. If it weren't for the banks not accepting wet signatures most of today's Realtors could be completely paperless.
You may be under a little misunderstanding about the 10 days to submit earnest money. If you'll look at the Purchase Contract Section 8n it states that upon acceptance of the offer, the earnest money will be deposited with the Escrow company, or the Brokers Trust Account. While it doesn't state it there, most brokers will require it to be deposited within 24-48 hours, and usually the next business day, and escrow opened.
Once there is an accepted contract then there is 10 days (unless negotiated differently) due diligence period to do all your inspections, but not 10 days before depositing the earnest money check.
The rest of my discussion was on Arizona Dept of Real Estate rules and laws. Those are AZ requirements. An agent cannot disclose the price and terms of another offer unless s/he has written permission from the seller.
They cannot tell you they have multiple offers if they haven't. That violates the law as well as the code of ethics. (All parties to the contract must be treated with fairness and honesty)
rjrcm is correct.
Also note in secein 8n that it states: ..."earnest money has been received by Broker named in 8r"... That is saying that the buyer has provided the broker with the earnest money at the time of signing the contract. As rjrcm states, an alternate method can be used, and that would be spelled out in the Additional Terms so the seller can agree. This works well in the case of an out of state buyer.
My point remains you can type up an offer sign and submit it electronically in 10 minutes, and not have to come up with any money until after it is accepted. That might be OK if everyone was honest but those less so have no compunction about making bids just to jack up prices
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