The First Impression That Can Tank Your Offer

Exactly. We really have to educate our clients here and some still insist on offering lower due diligence or earnest money. Sometimes they have to lose a house or two before they get with the program.

If a buyer wants the house, a higher EM amount will speak to the seller. It usually does...if everything else aligns with their set expectations!

p.s. Love the song BB.

Great post.  Thanks for sharing

Hi Candice,

I love that feature image.  As others have noted, it tells the whole story.  If the "earnest" money is weak, then it is not very "earnest," is it?  !!

Love that feature photo that says so much, Candice. Some buyers just don't realize the fishy first impression a low EMD conveys, even more so in a competitive market. Sellers certainly are aware.

Jeff

That old expression "Money talks" is still true but there are a lot of people who have not learned that lesson yet. 

I disagree. Silence is not a counter offer. Silence is a rejection of an offer. End of story. A counter offer is perpetuating engagement and may lead to a sale.

But you already knew that.

The topic is earnest money is one of my secret weapons in whether my offer (if I represent the buyer) is accepted or not, especially in multiple offer situations. I'll leave it at that, in case one of my local peers is reading... :-)

I'm just here to say, I can't handle that picture. 😀

I wholeheartedly disagree on this post. Just because some people may not have the liquid cash doesn't mean they are less qualified to purchase the property. I find people with higher earnest money deposits are quicker to withdrawal based on some arbitrary home inspection item. Earnest money doesn't mean much to me especially if the buyer qualifies for the loan, I know their selling broker, and I know their lender.

Interesting discussion - fun seeing different points of view.

A low emd suggests that either they aren’t committed to the deal or they aren’t as cash flush as they would like to seem. Generally the former

You only have one time to make a great first impression.  I would have suggested an additional deposit to be made 24 hours after inspection was completed along with proof of funds to close the transaction.  😎

Probably wise to look at offer in its entirety . In a normal market you can bet a seller wouldn’t act this way

If the owner is qualified and he offers the most then it’s time to take the offer . Esp if there are no crazy contingencies

Savvy investors/clients know that a solid offer includes a decent Earnest Deposit!  Great share!

Hello 

Candice A. Donofrio. The pic got me - I laughed . Out loud, alone in the home office. Although I would have read on anyway.  I think some did not get that you were talking about a commercial listing. And some would wonder, what's the fuss? It's just a deposit. But you are touching on the psychology of the parties. And a person of means, as Seller, says"if I were buying, this deposit is just a cost of doing business." Always enjoy your words.

Wow! As a buyer I've always relied on my Realtor to tell me the EMD amount.  Usually a flat amount of percentage of offer.  Never knew it was part of the acceptance criteria.  Is this new?

Sellers IMO should always seek the advice of their Realtor when determining to accept or reject an offer to purchase.

I usually ask my buyers to give a better than average Earnest Money deposit ... it does speak volumes to the listing agent and their seller.  It's another term that helps the buyer be in the deal and usually helps them win the bid!