We just got back from making an offer on what will hopefully become our first place!!!
The house is listed at $64,900 and we are offering $58,000 and asking that the seller pays closing costs. While that would be amazing we really don’t think she will agree to all that. After watching hours of Property Virgins and shows like that we know it is better to start a little lower and work our way up. Either way the contract says we should know by Wednesday.
We also learned a little bit more about the seller. She is out in California and evidently a little over her head in debt. If she doesn’t sell the property soon it is going to become a short sell. Everyone wants to avoid that.
In case you don’t know, a short sell is done though the bank not a person, which means they lack a sense of urgency. Instead of taking the normal 30 days to close it can take anywhere from 60 to 90 days or even more. That makes us hopeful that the seller will accept out offer.
We also ran into something else we knew nothing about before today, earnest money. We were required to give them a check for $250 to prove that we were, well, earnestly interested in this property. Basically, the money goes in escrow and if we back out or we were unable to secure financing they (I’m not sure if this is the seller or the real estate office) get to keep it. However, if we back out for reasons dealing with the home inspection or we are not able to come to agreement with the seller we get the money back. If (hopefully when) the deal goes through this sum will come off our closing costs.