First Offer On Rehab.
I've located a property on the market owned by a bank . Ive never made an offer to an agent before. Do I need a certain percent down as earnest??
If I do is this written in stone or could I just make an offer???
I've not yet made my first offer, so my first words to you are good luck and congrats! As a former realtor however, I can tell you about earnest money. In my experience, the less you can give up the better. What you are doing is giving the seller "transaction collateral" basically saying "IF I bail on this deal for no good (Legal) reason, then you keep my earnest money for wasting your time, taking the property off the market, etc". So if you can get away with $100, then more power to ya! I've also seen eanest money spelled out as a deffered payment of 30+ days, so then at least you don't need to put it up front. Hope that helps.
yeah i ust came back from seeing my realtor and he says there isn't a set amount but the bank might want a 1000 bucks I was thinking alot more
Earnest money is a show of good faith on your part to make good on your intention to buy the property. If the property is a hot commodity (with several people interested in it), then you may increase your chances of getting it accepted by the seller if you offer a sizeable amount of earnest money. If no one else is interested in this property, then it shouldn't matter.