Do I Have to Put a Deposit in With my Offer to Buy a Property?
There is no law that says you have to put deposit money down with your offer to purchase a property. But there is a law in Florida called the Statutes of Fraud. Part of that law says that in order to enforce a contract there has to be some time of consideration. That can be in the form of cash, check, money order or bank check. It could also be gold, silver or whatever else of value.
Now, with saying all that…. you know the answer to so many questions, it all depends:)
Why are you buying a home? The reasons you are buying a home should become part of your reasoning as to what type of deposit to attach to your offer.
If you fall in love with your dream home it is highly likely other buyers may also be of the same opinion as you. That creates competition. Here in Wellington many listings get multiple offers. The stronger you make your offer, the better your chances are that the seller will accept your offer and not someone else’s.
Many buyers don’t learn this lesson until after they have lost the chance at buying a home they fell in love with.
The bigger deposit you put with your offer, the more serious you appear to be in going through with the sale of the property.
A seller has to take their home off of the active market once they accept an offer. So they are looking at what is going to be the offer that is most likely going to close. The highest and best offer and terms is usually the one a seller will accept.
The seller has to take his/her house off the market they in turn want you, the buyer, to not be actively searching for another home. Some buyers want to place offers on multiple properties.
Many buyers’s agents don’t want to have the buyer’s money at risk. What if you decide you don’t want the property next week?
There are contingencies you can add to your offer, such as your offer is subject to you accepting the home inspection report on the property. If you don’t like the inspection report you can cancel your contract. If you cancel your contract within the terms of the contract, you get your deposit money back within the time specified.
If you don’t show the seller you are a serious buyer the seller will likely accept another offer.
No matter what the opinion of anyone else is, you must always ask yourself, do you really want this house? Are you willing to show that you are a serious buyer?
Wellington Short Sale Update: Deutsche Bank In Hot Water
How did a bank from Germany become an owner of foreclosed properties here in South Florida? Deutsche bank holds title to more than 1,400 homes in Miami/Dade, Broward and Palm Beach Counties.
What is the problem with that?
According to local municipalities Deutsche Bank lets the houses become the blight of neighborhoods. The local towns levy fines, code violations and other fees against the bank. But how do they enforce anything on a bank overseas?
When the cities and towns try to collect and pressure Deutsche Bank they say they are just the “trustee”. That it is the responsibility of the servicers to take care of the foreclosed properties. The bank refuses to take responsibility of taking care of the homes they foreclose on. Yet, the towns, villages and cities all say that the title records list Deutsche Bank as the owner or record and therefore they are the ones responsible for keeping up and maintaining the properties.
In Ft Lauderdale, the city has fines of over $6 MILLION dollars pending against ONE property Deutsche Bank owns for failure to maintain this property. The property is located at 1032 NW Fourth Avenue. It is only 867 square feet and probably worth less than 20,000. It is boarded up.
South Florida code enforcement officials site Deutsche Bank with failure to:
These can pose health problems to the neighbors and ruins the value of other homes in the area.
Deutsche Bank does not do that in Germany. In fact, in Germany it is not so easy to get a loan to buy a home. Deutsche Bank requires 20% to 40% down on a property and they really scrutinize your employment and make sure there is little risk in giving a loan for a property. Rarely is there a foreclosure. They also don’t bundle mortages very often to sell as securities.
But here, Deutsche Bank got involved with selling mortgage backed securities from high risk loans. They are being investigated by the U.S. . Deutsche Bank did not directly give loans to borrowers here in the U.S. Instead, it bought MortgageIT who made reckless loans risky borrowers. When the interest rates went up many of those borrowers defaulted in large numbers.
The U.S government alleges that they lied about MortgageIT’s internal controls in order to qualify for FHA insurance. Being able to say that your securities were insured by the Federal Housing Administration made those investments highly marketable to investors.
Deutsche Bank settled this lawsuit in May to the tune of $203.3 Million dollars. There are other investigations under way.
Deutsche Bank is one of the world’s largest banks. It’s assets total $2.6 Trillion dollars. Deutsche Bank is 140 years old and had more than 1,000 branches in large cities and small towns in Germany.
Wellington Home Prices- Higher Home Prices?
The South Florida real estate market is heating up! And Wellington is part of South Florida:) This is great for our real estate markets.
The South Florida real estate market is improving. The forecast is that home prices will rise another 6% before the end of this year.
Forecasters put Palm Beach County, Broward County and of course Miami/Dade counties to be in the top 10 highest and best performing markets in metro markets!!!
Of course there are pockets and areas within these counties that are still going to be going down in price for the next year or so. But the affluent and sought after markets have started to rise and will continue to go up.
These three counties were the first to fall- a huge fall in the bust. Following were Nevada and California markets followed by Arizona markets. But first to fall are first to rise!
From the collapse of the real estate market- most of South Florida saw prices plummiting down 50% to 60% from the boom prices. We are back to 2003 and 2004 prices in most places in South Florida.
Less than one third of all the sales taking place right now in South Florida are foreclosed properties. That number will be in flux for a while as the lenders continue to foreclose on properties stuck in the courts.
Phoenix is projected to have the highest increases in prices up to about 12.1 %. That is good news for Phoenix also!
About 60% of all the sales in South Florida are ALL CASH purchases. This helps keep the markets healthy and there does not seem to be any let up in foreign buyers eager to own a piece of Paradise in South Florida!