This post brought on by a blog reader who asked me a question.
The question was about putting down a Earnest Money Deposit with a short sale and how much that deposit should be. Well in the DC area; an Earnest Money Deposit of 2-3% - or more - is pretty typical.
My issues is with Short Sales. Now I am NOT a Short Sale Expert and I am sure some Short Sales Experts will disagree with me. However, I have a problem with tying up thousands of dollars of a Buyers money in an escrow account for months on end.
We all know Short Sales can take months and months. To make a buyer keep 5 or 10 thousand in an escrow account is just crazy. It may not be a lot of money to some; but to many buyers this is a substantial amount of money.
Instead; I write into my Short Sale offers - Buyers Earnest Money to be deposited with 24 hours of Banks Approval of sale. Has it worked - Yes. Will it work every-time - does ANYTHING work every-time? No; probably not.
Still don't agree? Well what happens when the property gets foreclosed on and the sellers skip town? The sellers and buyers have a contract and (at least in DC); the only way to release a escrow deposit is for the buyers and sellers to sign a release form.
Ever heard of a seller being foreclosed on and then their short sale agent can never reach them again? You bet it happens? Then how does the buyer get their money back? Well I am sure a judge could rule on it - but who wants to go to all THAT trouble?
So buyers - be careful when putting your Earnest Money down on a short sale. Make sure you know what happens if the property is foreclosed and how you get that money back if the sellers can't be found or how quickly you will get it back if the Bank/Lender says 'NO' to the deal.
-As always; consulting your Buyers Agent and/or an attorney is always recommended if you are unclear on the terms of a contract which you about to enter.
Happy Home Buying!
Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!
Office: 202-362-5800 Cell: 703.244.3971
Licensed in Washington DC, Virginia & Maryland.
Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016
Looking for a new local gym? Clean, Friendly, Great Equipment - and in the Neighborhood.
Well stop in Mt Vernon Squares RESULTS; in the City Vista Complex at 5th and K Streets NW.
Why Not? Try the Club for FREE -TODAY SEPTEMBER 23RD!
LOCATIONS ALSO IN DUPONT, DOWNTOWN AND CAPITOL HILL
Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions! Office: 202-362-5800 Cell: 703.244.3971 Licensed in Washington DC, Virginia & Maryland. Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016
One of my buyers; frustrated at the lack of inventory this summer; was excited to see several new listings hit the market over the weekend.
So we headed out early Saturday morning to start looking at properties.
She found a couple she REALLY liked. We talked about it - and she picked the best one. The home went on the market Friday afternoon.
I called the agent and she said; there were going to be multiple offers!
Well we made our best offer; as did several other people and the sellers picked another offer! Shoot! My buyer says; I saw something that came on Sunday - let's make an offer on that instead!
So I call the agent and guess what? They already had a contract. This property was on the market 48 hours.
48 Hours?! Pretty crazy!
It looks like in DC - if you have the right property at the right price -- it just may NOT be a buyers market anymore!
Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions! Office: 202-362-5800 Cell: 703.244.3971 Licensed in Washington DC, Virginia & Maryland. Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016
For those people who move to Washington DC; finding your way around can be the 1st biggest challenge you face! 2nd of course is parking - but you can't park if you can't find where you are going!
Washington DC's streets was designed to "confuse invading armies". I think it was a bad joke - it didn't stop the British in the war of 1812; but it sure as heck stops every tourist visiting from across the world.
Here is a beginners Guide to Navigating Washington DC:
So what happens when you run out of letters? What comes after "W" Street? Well there IS a system. Of course there are a thousand exceptions; but as a general guide here is how to figure out how far you are from the "Center" of DC:
It's not exact; but it helps!
Just remember the most important thing when Navigating DC. Are you meeting someone at 19th and P NORTHWEST or SOUTHEAST. One is in Dupont Circle; the other over the Anacostia River, past Capitol Hill. This simple mistake is over 6 miles and 30-45 minutes in traffic apart!
Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions! Office: 202-362-5800 Cell: 703.244.3971 Licensed in Washington DC, Virginia & Maryland. Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016
The above line has been told to a great many Real Estate agents across the country. It actually makes a lot of sense. If I know I am going to buy a new condo in a building; and I know exactly what I want - why would I need a Realtor? Especially if they said; "Instead of paying your agent commission, we will give you a 'deal'!"
Well then I sure wouldn't want a Realtor if I thought the builder would give me a "Deal".
Let me now tell you a couple of REAL LIFE examples; that have happened just in the past couple of months:
A represented a couple buying a condo in a new building. I negotiated the deal down just over $23,000 and got them a free storage unit. How? Well I knew from networking with other agents; what deals the developer was willing to make. Knowing some inside info - was a huge help. The developer was also banking that I would bring back more buyers looking for a deal.
Another current client; I just helped get out of a builders contract so she could actually buy a place and move! 18 months ago she didn't think she needed an agent. She let the developer give her the basic "builders" contract; which offered her little protection. Not understanding the fine print; and the developer not telling her; she gave the developer $18,000 - in deposits. She was to move into her unit over a year ago. Construction is STILL not complete. The fine print; allowed the builder to delay construction for over a year. She is now out of the contract - got all her money back and off to purchase a home she can actually move into!
If you think you are getting a better deal; or don't need an agent to help you with new construction; you are probably mistaken. They may offer you better deals; but more than likely - they are making more profit on you without a Realtor - and you may not be protected from bad appraisals, financing issues or delays in construction.
Hire a Buyer's Agent - They will explain everything to you and point out all the "fine print". Your agent will also save you money and protect your purchase.
Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!
Office: 202-362-5800 Cell: 703.244.3971
Licensed in Washington DC, Virginia & Maryland.
Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016
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Licensed in DC, Maryland & Virginia. James is a Graduate of the Realtor Institute and has completed training as Accredited Buyers Representative. He's better qualified to assist buyers and sellers.
I specialize in Relocations into the DC Metro area as well as 1st Time buyers and will be able to answer as many questions about home buying as you can ask! As an Accredited Buyers Representative (ABR); I have additional training and experience to represent buyers in their Real Estate purchase.
I maintain three Real Estate Licenses to serve you all around the beltway; in Virginia, Maryland and the District of Columbia.
Follow this link to Search for homes in the DC Metro area : HOME SEARCH
Washington DC has many wonderful sights and Neighborhoods. Where else can you live blocks from the White House or look out the window and see the Washington Monument?
We have a great subway system to carry you from the suburbs of Virginia or Maryland into the heart of the District.
Whatever you questions; I will be happy to help and guide you. Visit my blog for information about the DC Real Estate market and questions about the Washington DC area.
I have helped Buyers and Sellers throughout the Washington DC Metro area. No matter if it's your First Home, next home or vacation home - I can help and guide you through the entire process.
My experience includes working with Buyers, Sellers AND Renters in Washington DC, Virginia and Maryland.
* Selling or Buying
* First Time Home Buyers
* Condos or Co ops
* Military Relocations including civilian Personnel for the following DC area Military Bases:
It was very comforting to work with you and that meant a lot to me. Thanks for all your help and the priority you must have given to selling the apartment. I will certainly consult with you for any future real estate needs and recommend you to people I know. Again, thank for your professional, customer oriented services. -Ernest
This was the first home buying experience for both of us and James walked us through the entire process from start to finish. To ensure that we understood every aspect of the home buying experience, James took the time to learn more about us as individuals so that he could mold his search qeuery specifically to our needs/wants. James helped ease many of the questions and uncertainties we had as first time home buyers and remained professional throughout. We truly felt like more than just a client with James. To this day we drop his name to all friends and family searching in the capital region. -Michael Johnson
Thank you for your hard work and dedication. I will call you again and sent any friends I have your way. -SJ
Jim-- a huge thank you for being a terrific realtor and guiding us so well. The whole experience was a pleasure and we enjoyed our time together. We raise our glasses to you and again say thank you for everything. -Jill and Steve
I am so so glad you were my Realtor. You helped me every step of the way. I had no idea how many details there were to the whole process. Thanks again! -Eric
Thanks again for getting my condo sold so fast, especially since the market was so bad right now, I feel lucky to have found you to help me! -Brandon
I Love my place. The neighborhood is great! I'm happy to do anything just yet. I'm very happy and blessed about my purchase. Thanks again for all your hard work. -JJ
It was a pleasure working on this transaction with you. You were so organized and prompt with everything. Thank you and we hope to do business with you again. -Pat; Coldwell Banker
Thank you for everything. I knew I could count on you for your professionalism, quick resolutions and to go out of your way to get things done. It really meant a lot to me. Thanks so much! -Lise
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