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We put an offer in on a house last Saturday morning. We got a call that afternoon from our realtor that the seller signed and accepted another offer the night before but that they would keep our offer as a back-up. Ever since then, the house is still on the MLS and listed as with contract - waiting for earnest money. This would be the 4th business day since they signed the offer and the buyer still has not given them their earnest money?
We are ready to go and would have written a check for the earnest money right away after acceptace of our offer and we have financing all lined up already to go. We even sent them a pre-qual letter from our bank with our offer.
So as an agent, how long would you let this go before you would contact the back-up and start with them? We would really like to get this house but it kills me to keep seeing it just sitting there!
We put an offer in on a house last Saturday morning. We got a call that afternoon from our realtor that the seller signed and accepted another offer the night before but that they would keep our offer as a back-up. Ever since then, the house is still on the MLS and listed as with contract - waiting for earnest money. This would be the 4th business day since they signed the offer and the buyer still has not given them their earnest money?
We are ready to go and would have written a check for the earnest money right away after acceptace of our offer and we have financing all lined up already to go. We even sent them a pre-qual letter from our bank with our offer.
So as an agent, how long would you let this go before you would contact the back-up and start with them? We would really like to get this house but it kills me to keep seeing it just sitting there!
I require check in hand at time that i present the offer to the seller. Without the check the consideration is missing and it is not a complete offer without consideration.
This is a contractual obligation, so whatever the buyers specified in their offer is what is correct. I typically request 2 business days after contract acceptance so I do not have to "run" over to the title company with a check.
If the other buyer has not deposited their EM, the seller will need "cure" the problem by informing the buyer that they are potentially in breach. All this could take several days, so 4 days is not too long. But I would definitely keep my eye on it, maybe even contact the listing agent to inquire and let them know you are still ready and willing.
The Texas contracts don't have a date. It's an unwritten "time is of the essence". It states "upon execution," but there is no deadline. Earnest money is not needed at offer presentation. Offers are submitted via email these days (in most markets) and it's silly to run around town to present a check that might get a big "V-O-I-D" written across it.
Yeah, this is a pretty regional specific question. My MLS doesn't even have that option. Earnest money has to be received at the time of lease signing and deposited with 24 hours of acceptance of the contract unless something is written in to the contrary.
Here (Central Texas) the earnest money check is taken to the title company with the offer and receipted; that's what "upon execution" means, if all parties have agreed and signed off on the contract, it is executed and the check had better be there or there's no contract. That is the deadline.
Standard practice has been that a copy of the earnest money and option fee checks are sent with the offer to the listing agent along with the pre-approval letter to show that the buyer's agent has done their due diligence on their clients and has those in hand. A good buyer's agent has that earnest money check to the title company and receipted the same day as the executed contract is delivered to the title company. What IS stated, however, is that the option fee must be delivered (to the seller or the seller's agent, NOT the title company, and most of those have stopped accepting them due to liability issues) within two days, or there's no option period.
Interesting - thanks for your responses. I had my agent email the sellers agent letting them know that we are still interested and have all our ducks in a row. She has not heard back from him - so maybe things are moving along on their end. Or maybe they are telling the buyer to get their money in.
This agent was really on the ball with everything so I don't think he would just not update the MLS if they got the money. It does not seem like something he would do since my agent was always able to get a hold of him right away and he updated the MLS pretty much immediately upon accepting the offer. So we will see!
I would continue to look for another property. If things fall through, and you haven't found another property, you can accept that offer at that time. I've learned to tell my buyers not to get emotionally involved in a property until they know it's theirs for sure.
I would continue to look for another property. If things fall through, and you haven't found another property, you can accept that offer at that time. I've learned to tell my buyers not to get emotionally involved in a property until they know it's theirs for sure.
Totally agree. In fact, we are writing an offer on a different house today. I look at it with the "if it is meant to be, it is meant to be" attitude.
Totally agree. In fact, we are writing an offer on a different house today. I look at it with the "if it is meant to be, it is meant to be" attitude.
Wish you the best, good luck!
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