The housing market in Grand Rapids is competitive. Well – probably everywhere. Yesterday a friend lost a bidding war, and she was shocked.
She shouldn’t have been. She thought because she extended herself in order to bid asking price (She’s a bargain shopper and a coupon clipper) she was a shoo in, and the realtor seemed so affirming to her offer. How could they not accept it?
Another family who had already sold their home and were very sick of staying with family offered 33k over asking with an attractive earnest deposit. That’s how.
This decision isn’t really up to the realtor. That positivism and encouragement that you are hopefully getting is more about getting your business and referrals from is the connection between the realtors attitude and if you will step foot in the house after the offer is made.
Comparison of the offers on the table is the real war. You play a card, and shut your eyes. Maybe you could put a pretty ribbon on it, too. Just for safe playing – in hope to lead to safe keeping.
How Does An Earnest Deposit Work?
The earnest deposit can definitely make your offer more attractive. It’s like saying, the paperwork process towards closing will take awhile, but here, I’ll give you 1-3% of your asking price in cash 1-3 days after you accept my offer. Because I’m a good person, and I really want you to accept my offer. It makes it feel to the seller that you will put in effort upfront to take care of their beloved asset.
Good Faith Deposit is Synonymous For Earnest Deposit And A Bow On A Package
If having an earnest deposit seems unrealistic to your financial situation, that’s understandable. This deposit is separate than the down payment, and the savings ready and waiting was hard to come by.
You have already applied for a new line of credit with a mortgage. Asking for another in a personal loan for an earnest deposit amount will roll into one-try…and won’t hurt your score for pursuing more credit all at once. It’s actually the perfect time to ask.
Don’t lose the house of your dreams because your offer wasn’t attractive enough. It’s a competitive market out there.
Click here to pursue your means to an end, in the form of good faith – this time known as a personal loan. 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