Click Photos For Listing Information

Sterling
$249,900
3 Bed, 2.5 Bath
Well cared for home

Leesburg
$319,900
3 Bed, 2.5
Brick end unit

Lovettsville
$350,000
3 Bed, 3 Bath
4.28 acres

Waterford
$1,785,999
2 Bed 2.5 Bath
Stately Stone Home

Leesburg
$950,000
4 Bed, 4.5 Bath Amazing Custom Home

Leesburg
$284,900
4 Bed, 2.5 Bath
4 Nice Size Bedrooms

Call 703-637-0610 now for more information and to view these properties!

Pre-Purchase Planning
Deposit Required with Contract

Dave and Rose have been have been searching for a home in Northern Virginia for many months. One evening while searching the Internet, they find a home which is exactly what they are looking for. They call 703-637-0610 to get more information and to schedule viewing the property. The next day they tour the home, fall in love with it and want to write an offer at once.

While reviewing the purchase contract section regarding the "Escrow" deposit strategies for a strong contract and the legal obligations, the agents asks Dave and Rose how much of a deposit they planned to offer with the contract. Dave and Rose looked a little shocked, "We don't have any cash for a deposit."

Despite what you may see on the late night infomercials, it has gotten very difficult to buy a home with No Money Down. It is possible, but don't plan on it. To have a valid and enforceable contract, in most States, there must be some consideration given. This is usually a monetary deposit held in an escrow account until settlement. The amount of the deposit is negotiable between the buyer and seller.

So, why not just offer a $1deposit to meet the consideration requirement? The best way to look at the deposit is from the seller's viewpoint. The seller, with the advice of their listing agent, must assess the seriousness of buyers to purchase the property and their ability to make it to settlement. All the terms and monetary considerations of your offer must be considered. What is the risk of taking your contact over another one? Should the seller risk taking their home off the market for your contract, or wait a couple more weeks to see if another buyer shows interest. Once a contract is accepted (ratified) the seller has few options, so they want to see a strong contract.

If the buyer is willing to place a 5% deposit in escrow with the contract, they look much more serious about going through with the purchase than a buyer who only offers a $500 deposit.

What would have helped Dave and Rose is talking with a Buyer's Agent when they first started getting interested in purchasing a home. They would have gotten the planning information they needed to be prepared to write the contract on their dream home with confidence. Maybe a $500 deposit is all David and Rose can afford, but with prior knowledge their real estate agent would discuss other available options to help them write a contract acceptable to the seller.

As they say, "A thousand mile journey begins with the first step." Before you begin your journey, get the road map, find the easy paths and avoid the rocky ones. Call us to setup a free consultation. We'll be your guide from start to finish on the road to home ownership.

By David T. Mullins

"To be satisfied with a little, is the greatest wisdom; and he that increaseth his riches, increaseth his cares; but a contented mind is a hidden treasure, and trouble findeth it not." Akhenaton

When you find a home you would like to view, give us a call at 703-637-0610 and we'll be happy to schedule a private showing for you. Take a day and have a guided "Homes Tour" of all your favorite listings and learn how to evaluate homes like the pros. We offer these services FREE to our buyers.

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Contact Us at 703-637-0610, or info@nvarg.com
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Information is deemed accurate but not guaranteed
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