Buying a house-- question about earnest money to realtor

[Carwhore]

Im looking at a house, put an offer in they accepted and never put the earnest money down. My realtor had me write one out and fax him a copy to get the house deal approved ( Fannie may house).

I had the inspection done Tuesday and a lot more issues were found with the house than anticipated. The big thing being the roof. Hail damage, shingles totally missing, just a lot of damage and would need done completely at time of purchase. Now I hate people that try to re-negotiate a contract after an inspection (I sell cars a lot of mechanics write us bs thing). But with this roof issue it is apparent. And it's also a 7,000 issue.

Now I've told the realtor that I'm not going to accept the deal if they don't fix the roof. At first he wanted nothing to do with renegotiating the contract which I understand. But after a long conversation with him and once he realized I was serious he has been hounding me for this check.

My issue is I don't want to tie up $1,000 in earnest money on this house if they even don't accept fixing the roof. Am I required to give him this money before they accept my new offer? Or perhaps is this just one of a realtors techniques from trying to get me not to back out of the deal if Fannie may doesnt accept fixing the roof.

Basically do j have to give my realtor the earnest money check for $1,000 when we're not completely finished negioating

[justin0469]

As long as your contract has a contingency on them fixing the roof, you should be safe. Earnest money is refundable if the seller doesn't hold up their end of the deal. Take a look at the earnest money section and it should say that.

Typically, that check will not be cashed until closing. At closing, it will be given back to you or $1,000 credit will be listed on the HUD on your side.

[jester3681]

As far as the State of Ohio (I assume you're buying here) is concerned, ernest money is simply a sign of good faith that you will complete the transaction. It is not required by any statute or law. If you want it back, they are required to give it back. That being said, if you take back your deposit, it will probably end your transaction. If you want to negotiate, it's a good practice to let them keep it. But once again, this is all contract on a napkin/handshake over dinner type stuff. Nothing dictates the practice other than the two parties involved.

[Moto-Brian]

We had a deal where we were ready to walk on our house we just purchased. The earnest money is typically only a few hundred dollars, but nonetheless, it is solely based on completion of the deal.

It should have been written that you had the total option to walk at even the final hour if anything did not meet your satisfaction. Including up to the walk through.

If you decide to bail, the earnest money is returned. Now, the seller can ask for some money if they feel you tied up the process in any way and it can become a bit weird, but typically, it isn't.

Remember one thing, your realtor works for YOU and really needs to do what you ask. If you feel it isn't a deal unless they fix the roof, he needs to assist and support you on that and help you out.

[Casper]

We had a deal where we were ready to walk on our house we just purchased. The earnest money is typically only a few hundred dollars, but nonetheless, it is solely based on completion of the deal.

It should have been written that you had the total option to walk at even the final hour if anything did not meet your satisfaction. Including up to the walk through.

If you decide to bail, the earnest money is returned. Now, the seller can ask for some money if they feel you tied up the process in any way and it can become a bit weird, but typically, it isn't.

Remember one thing, your realtor works for YOU and really needs to do what you ask. If you feel it isn't a deal unless they fix the roof, he needs to assist and support you on that and help you out.

If you feel the slightest bit uncomfortable with your realtor, fucking ditch them and get someone else. They are an advocate for you. If they weren't interested in renegotiating to get the roof fixed, I would've immediately contacted another realtor. I have a friend of the family we've used in the past. If you want her info, let me know. She's freaking awesome. She sells houses because it's what she loves to do, not for the money. She helped us with our house. The builder ended up liking her so much they hired her to sell their other spec homes.

[Steve Butters]

just buy it, pussy.

i know someone who does roofs and is broke and could use the work hours

[Carwhore]

The roof isn't in the contract right now.

I want it to be, but the other realtor/Fannie may haven't agreeded to.

Since this agreement hasn't been made I feel like the realtor is trying to pressure me into this earnest money deposit.

[Carwhore]

just buy it, pussy.

i know someone who does roofs and is broke and could use the work hours

The address is 541 courtright ct. If you can get a estimate for me (cash money off the books discount) I will evaluate it.

[conn-e-rot]

Your contract should be written that everything is contingent on inspections. If the realtor isn't doing what you ask then ditch the fucker.

[Carwhore]

Your contract should be written that everything is contingent on inspections. If the realtor isn't doing what you ask then ditch the fucker.

The contract was written that exact way, everything is contingent upon inspection. Well that's what happened. The inspection was done Tuesday and now I'm not please with the outcome.

I had signed the offer and everything prior to inspection and like I said I had to write out the check to the realtors company for Fannie may to fully accept the offer.

Well now comes the inspection. I'm displeased with the outcome. I want the seller to fix the roof, They haven't agreed to fix the roof yet the realtor is on me now to pay the earnest money.

I sent him a text message today stating " I would have no problem giving him the check for the earnest money, once the seller fully agrees to fix the roof (either in them actually contracting the job or discounting the price), but I didn't not want to tie up $1,000 if they were not going to accept Dixon the roof. My realtor hasn't show any sign or said anything in the way of them actually doing this.

[madcat6183]

Don't give them shit for money. If that contract doesn't have the roof in it and you give them 1,000 then you are agreeing to the contract. You can still get your 1,000 back, but if you signed the contract contingent on the inspection, obviously the inspection now shows some issues.... If that's the case, walk away or make whatever Realtor is demanding the earnest money, re-write the contract pending the repair of the roof.

Also, Fannie Mae isn't the one that is writing the contract, they just give the guidelines, so that Realtor can definitely put the roof issue in the contract.

I had a bad front door, and missing vent cap when I was buying my house, they didn't want to fix either, I told them I would walk, both were in the final contract, fixed for free.

All of the above is valid info that others have posted, but no way in hell I would agree to a house knowing it needed a new roof, even if it was 1,500 bucks unless I was getting a credit on the HUD1 from seller for 1,500. Then sure.

[flounder]

I didnt put any earnest money down

[Bad324]

subscribing to this so I can read it sober. I'm currently in the market to buy my first home so I get the feeling this will be good information to read and know but in my current state its useless. Sorry I can't be of any help

[Moto-Brian]

The contract was written that exact way, everything is contingent upon inspection. Well that's what happened. The inspection was done Tuesday and now I'm not please with the outcome.

I had signed the offer and everything prior to inspection and like I said I had to write out the check to the realtors company for Fannie may to fully accept the offer.

Well now comes the inspection. I'm displeased with the outcome. I want the seller to fix the roof, They haven't agreed to fix the roof yet the realtor is on me now to pay the earnest money.

I sent him a text message today stating " I would have no problem giving him the check for the earnest money, once the seller fully agrees to fix the roof (either in them actually contracting the job or discounting the price), but I didn't not want to tie up $1,000 if they were not going to accept Dixon the roof. My realtor hasn't show any sign or said anything in the way of them actually doing this.

Usually, if earnest money is put down, it is early. Sometimes it is later to show you are serious. No matter what, if the contract is written correctly,, you have the right to bail by the end during the final walk through.

Earnest money is held by the realtor. It just basically says that you won't walk without just cause. Roof is just cause. It isn't like you decided that you wanted a different home and want to walk away from this one. That's what earnest money protects from happening...

You'll be fine, dude. Trust me. The amount is silly especially this late, but no matter what, it is negotiable. Tell them you'll do $100 earnest. It doesn't even matter really as you are willing to walk due to the roof. Seller will get an answer back by a day or two and if not what you want? You get the money back and can walk away...

[Cheech]

If you feel the slightest bit uncomfortable with your realtor, fucking ditch them and get someone else. They are an advocate for you. If they weren't interested in renegotiating to get the roof fixed, I would've immediately contacted another realtor. I have a friend of the family we've used in the past. If you want her info, let me know. She's freaking awesome. She sells houses because it's what she loves to do, not for the money. She helped us with our house. The builder ended up liking her so much they hired her to sell their other spec homes.

Motherfucking this right here. I went through a realtor and a banker before I settled on the team I ended up buying my house with. If you feel like there's no communication between you and your realtor, or that they aren't acting in your best interest, fire them immediately and get someone else who is. I know it might be uncomfortable for you being in that position, but sometimes you just have to swing the axe and do what needs to be done. Just remember that the realtor doesn't have to live with the house after the deal is done, you do.

[Carwhore]

Ok so earlier tonight via our text messages he wanted the money so bad he offered to come to my work to pick the check up.

When he comes I'll tell him I'll give him $100 not $1,000. If he has any issue with this then I will fire him and contact Justin (Justin0469 or something like that lol) and have his woman realtor to handle all further endeavors.

[Carwhore]

And I have no problem telling people what I think. I told him today I was calling off the appraiser, until they agreed to do so, and if he had a problem with that I would just cancel the contract on the house then and there

Edited January 17, 2012 by Carwhore

[Carwhore]

Usually, if earnest money is put down, it is early. Sometimes it is later to show you are serious. No matter what, if the contract is written correctly,, you have the right to bail by the end during the final walk through.

Earnest money is held by the realtor. It just basically says that you won't walk without just cause. Roof is just cause. It isn't like you decided that you wanted a different home and want to walk away from this one. That's what earnest money protects from happening...

You'll be fine, dude. Trust me. The amount is silly especially this late, but no matter what, it is negotiable. Tell them you'll do $100 earnest. It doesn't even matter really as you are willing to walk due to the roof. Seller will get an answer back by a day or two and if not what you want? You get the money back and can walk away...

Thanks

[mojocho]

Don't give them shit for money. If that contract doesn't have the roof in it and you give them 1,000 then you are agreeing to the contract. You can still get your 1,000 back, but if you signed the contract contingent on the inspection, obviously the inspection now shows some issues.... If that's the case, walk away or make whatever Realtor is demanding the earnest money, re-write the contract pending the repair of the roof.

Also, Fannie Mae isn't the one that is writing the contract, they just give the guidelines, so that Realtor can definitely put the roof issue in the contract.

I had a bad front door, and missing vent cap when I was buying my house, they didn't want to fix either, I told them I would walk, both were in the final contract, fixed for free.

All of the above is valid info that others have posted, but no way in hell I would agree to a house knowing it needed a new roof, even if it was 1,500 bucks unless I was getting a credit on the HUD1 from seller for 1,500. Then sure.

+1

Earnest money doesn't mean anything. It's an old habit that tries to avoid people coming in just for shits and giggles knowing they have no intention of buying. It makes things smoother, but doesnt really matter.

Hold firm on the Earnest money, get what you want from the seller, or walk. don't make it personal.

You're realtor sounds like a tool and looking for a quick commission. I'd ask to make sure this house is not his or his office's listing. It should have been disclosed already. But there is not reason he/she shouldn't be your pit bull in this. That's why they get paid.

[Carwhore]

The realtor is mike Pacifico from the Pacifico group. He is the type of quick deal in and out.

The listing agent is Jim fox, from fox realty. I've meet him at the property personally.

I feel like he is like my last realtor and that wasn't what I was looking for. During the looking process everything was great, we did lowball the house and finally agreed to a price slightly higher. With that being said I have a ton of little issues to deal with. The roof is my only concern. Not to mention there is radon in the basement that's higher than standards. I've been told how to fix that problem and shouldnt be that big of an issue but the roof is.

So I should just tell him im not going to give him any earnest money

[Carwhore]

Ok so I've talked to the realtor this morning told him I was not going to give him the earnest money check until the addendum from fannie mae stated that they were either going to fix the roof or have the price adjusted.

What he tell's me is that doesn't matter he has a signed contract prior to the inspection stating that I would give him a check for 1,000 earnest money. I have re-read the contracts and the first contract (Columbus Board of Realtors Contract) doesn't have any earnest money specified anywhere. However the second contract (Fannie Mae Addendum) Does. It does have a spot saying earnest money of $1,000 must be placed in a trust account acceptable to the seller within 2 calendar days following the effective date (which this has passed now).

With all this being said I have signed a contract to give him the deposit, I'm not in anyway trying to get out of the contract I still want to purchase the house. I just don't want the realtor to knowingly accept this earnest money if fannie mae isn't actually going to fix the roof and make a new addendum.

Should I give him the check, and then request the money back because the inspection failed? Or do I have to wait until I find out if fannie mae is going to fix the issue?

[conn-e-rot]

You will get your money back if sale doesn't go through and if does go through you get credit for it or they return it. When we bought our house we looked at a lot of bank owned houses and my realtor (my aunt) said that there are some banks that will not accept an offer if there is no earnest money.

[Cheech]

Ok so I've talked to the realtor this morning told him I was not going to give him the earnest money check until the addendum from fannie mae stated that they were either going to fix the roof or have the price adjusted.

What he tell's me is that doesn't matter he has a signed contract prior to the inspection stating that I would give him a check for 1,000 earnest money. I have re-read the contracts and the first contract (Columbus Board of Realtors Contract) doesn't have any earnest money specified anywhere. However the second contract (Fannie Mae Addendum) Does. It does have a spot saying earnest money of $1,000 must be placed in a trust account acceptable to the seller within 2 calendar days following the effective date (which this has passed now).

With all this being said I have signed a contract to give him the deposit, I'm not in anyway trying to get out of the contract I still want to purchase the house. I just don't want the realtor to knowingly accept this earnest money if fannie mae isn't actually going to fix the roof and make a new addendum.

Should I give him the check, and then request the money back because the inspection failed? Or do I have to wait until I find out if fannie mae is going to fix the issue?

Disclaimer: My experience is severely limited to just my house purchase, someone like Justin who has more experience in real estate trumps this.

How confident are you in the home inspection? When I got my home inspected, I went off a friend's recommendation and not my realtor. The guy ended up missing a bunch of stuff, like a leak in my guest bedroom window which was exiting above the garage (when the garage door is raised, it covers the whole thing), old roof that ended up being replaced after the 2007 windstorm, stuff like that. My point is if the roof is in need of repair, how confident are you that that's the extent of the wear and tear on the house? It sounds like you're emotionally invested in the house at this point, and you're being pushed into an arrangement that you're not comfortable with which doesn't usually end well.

[jbot]

Just tell him that you'll be happy to give him the check but you'll be asking for it back immediately if they don't agree to repair the roof. Your realtor doesn't seem to have your interests at heart from your side of the story... I suggest switching to someone who comes recommended from a satisfied client.

[Carwhore]

Disclaimer: My experience is severely limited to just my house purchase, someone like Justin who has more experience in real estate trumps this.

How confident are you in the home inspection? When I got my home inspected, I went off a friend's recommendation and not my realtor. The guy ended up missing a bunch of stuff, like a leak in my guest bedroom window which was exiting above the garage (when the garage door is raised, it covers the whole thing), old roof that ended up being replaced after the 2007 windstorm, stuff like that. My point is if the roof is in need of repair, how confident are you that that's the extent of the wear and tear on the house? It sounds like you're emotionally invested in the house at this point, and you're being pushed into an arrangement that you're not comfortable with which doesn't usually end well.

I am 100% confident with the home inspection. The inspector was

Rick A Harrington

Patch Independent Home Inspections, LLC

614-565-4962

www.patchhomeinspections.com

If anyone needs an inspection done go with this guy! He was awesome! The inspection was set at 1:30 I left at 3:30 to go to work and he wasnt finished. I walked around every point of the house with him, looked at everything. He also used his thermal imaging camera (i requested) we found a bathroom leak with it, also used a moisture test thing around all the top floor. The roof wasn't causing any internal damage to the property yet, but if they roof inst fixed it would.

I am going to end up giving the realtor the check, and he is going to hold it for me, he's not going to deposit it, he will just have it in his possession if Fannie Mae requires it.

*EDIT* There is more wear and tear on the house than the roof, a lot of little issues that need addressed. Which I plan on doing. I think i got the house for a great buy if they accept fixing the roof, and if they do the little nickle and dime stuff I will address myself.

Edited December 15, 2011 by Carwhore