This is a very interesting video. 👍👍👍 If a buyer makes a contingent offer on a new home, and the buyer isn't able to fulfill the contingency (for example, sell an existing home), would the buyer receive his earnest money back?
Thanks! It depends on the builder/contract. I usually see either of these two scenarios: (1) builder says EM is non-refundable for any reason, (2) builder gives buyer X number of days to remove contingency (ie, buyer has to get his house under contract by certain date-usually not more than 1 month from getting in contract). If buyer fails by that date, contract is voided and buyer gets EM back.
@@BenjForeman Thanks for answering my question, Benj. In the first scenario, how long is the buyer given to sell his or her home before the boom is dropped and the deal is rescinded and the buyer loses the EM?
@@audiophileman7047if the contract says non-refundable, then there is no grace period. The buyer has to close by the close date and if he doesn’t he loses his EM. In other words, the deal is based on the assumption the buyer will sell his house on time. If it takes longer than expected to sell, a back up option is for the buyer to qualify for a mortgage without having to sell his house so that he can still purchase the house and sell his old home after the purchase.
Boy, I know about the dog thing. We had neighbors move in and they have a dog literally named 'Hades'. It barks every time I got into our backyard and hits the fence sometimes. I think we'll have to wait for it to pass from old age before selling. I don't think there's any way to get them to change their dogs behavior at this age. So I get you there!
This is a very interesting video. 👍👍👍 If a buyer makes a contingent offer on a new home, and the buyer isn't able to fulfill the contingency (for example, sell an existing home), would the buyer receive his earnest money back?
Thanks! It depends on the builder/contract. I usually see either of these two scenarios: (1) builder says EM is non-refundable for any reason, (2) builder gives buyer X number of days to remove contingency (ie, buyer has to get his house under contract by certain date-usually not more than 1 month from getting in contract). If buyer fails by that date, contract is voided and buyer gets EM back.
@@BenjForeman Thanks for answering my question, Benj. In the first scenario, how long is the buyer given to sell his or her home before the boom is dropped and the deal is rescinded and the buyer loses the EM?
@@audiophileman7047if the contract says non-refundable, then there is no grace period. The buyer has to close by the close date and if he doesn’t he loses his EM. In other words, the deal is based on the assumption the buyer will sell his house on time. If it takes longer than expected to sell, a back up option is for the buyer to qualify for a mortgage without having to sell his house so that he can still purchase the house and sell his old home after the purchase.
@@BenjForeman Thanks for your further comments. It sounds like the "art of the deal". 👍👍👍
Boy, I know about the dog thing. We had neighbors move in and they have a dog literally named 'Hades'. It barks every time I got into our backyard and hits the fence sometimes. I think we'll have to wait for it to pass from old age before selling. I don't think there's any way to get them to change their dogs behavior at this age. So I get you there!
Yikes! Yeah, dogs can be a problem. 😮