When you start the process of buying a home or any type of real estate, you’ll no doubt hear the term “earnest money deposit” (EMD). So what exactly is an EMD?
An EMD becomes relevant when you are ready to make an offer on a property. In most states, your Real Estate Agent prepares the offer on your behalf. The offer usually takes the form of a written contract that is submitted to the seller by way of their agent.
In addition to the offer document, sellers typically expect an EMD. An EMD is a monetary deposit submitted via check to demonstrate to the seller that you are a serious buyer. In some regions of the country, only a photocopy of the check is submitted with the offer, and the original check is delivered to the appropriate entity if the offer is accepted. Ask your Real Estate Agent to clarify how deposits are handled in your region of the country.
The check is usually made out to an independent third- party such as a Title Company, Escrow Company, Real Estate Attorney or your Real Estate Broker. Ask your Real Estate Agent to clarify who will hold the EMD.
The amount of the EMD sellers expect varies by region. The EMD amount is based on the customs and practices for a region, but is generally from 1% to 2% of the purchase price. In a competitive market place where demand exceeds the supply of homes, some buyers may offer a higher EMD than expected to impress the seller of their intent. In determining the amount of your EMD, consult your Real Estate Agent and balance the need to demonstrate your serious intent, against the good business practice of minimizing the deposit amount.
The amount of the EMD is usually applied to reduce the purchase price of the property or to cover closing costs, as you dictate. For example, if you are purchasing a $300,000 property and you give an EMD of $3000, then the remaining balance owned at closing is $297,000 (plus closing costs). Alternatively, you may direct that the EMD be applied toward the closing costs.
Once a valid contract for purchase is created, an independent third-party usually holds the EMD until the purchase is either completed or cancelled. At this point, the money belongs jointly to both the seller and the buyer.
In cases where you make an offer that is accepted but later decide to cancel the offer, the terms specified in the contract (or state law) will dictate if, and under what circumstances, the EMD is returned to you. Be aware that you could loose your deposit if you do not not comply with the terms of your contract. Your Real Estate Agent can provide you information about how EMDs are dealt with if a contract is cancelled.
Since state law varies by region and practices can differ even within the same state, be sure to consult your Real Estate agent about the rules that apply to EMDs in your region of the country. You should also be aware that the EMD is not related to any down payment that you make toward your home loan.
Archive for April, 2010
6 Steps to Creating Your Very Own Maintenance Free Landscape on Long Island
Wednesday, April 21st, 20106 Steps to Creating Your Very Own Maintenance Free Landscape
on Long Island
By Kevin Godberson
In the world of landscaping, any reputable landscape company would tell you that the key to a maintenance free property starts with a proper (what we call in the Long Island community) â??â??Spring Openingâ??â?? or â??â??Spring Clean-upâ??â??.
We all want a maintenance free propertyâ?¦ Donâ??t we? So here are 6 steps to help you create your very own maintenance free landscape.
Step # 1 â?? Raking Leaves and Thatching Grass
Start by raking all leaves, sticks and acorns from all flower beds and thatch all grass areas. This will give you a clean foundation to start from. Now your lawn areas can breath and are ready for the first application of lawn crabgrass control with fertilizer.
Step # 2 â?? Weeding and Mulching
All beds should be treated with a healthy layer of mulch to slow down the germination of weeds. A pre-emergence weed control can be used to also stop the weeds from coming up. A good covering should be put down over soil before the mulch is spread. Who wants to weed beds on the weekend? NOT ME.
Step # 3 â?? Crabgrass Control
For a lawn to really prosper it should have an application of pre-emergence Crabgrass control put down. This will stop crabgrass from flourishing later in the season. Spot seed all bare areas so lawn fills in. Be sure to keep fertilizer away from bare areas as it will stop the seed from germinating.
Step# 4 â?? Watering Your Lawn
At this time you should water the fertilized areas in order to green up your lawn. Make certain to go over all heads. If you have a sprinkler system, make sure you inspect each head for proper operation.  Rotation of heads and spray distance is important to get entire lawn watered. We donâ??t want areas of your lawn to burn up as they take a long time to come back to life.
Step# 5 â?? Crabgrass Control â?? (revisited)
After about 4 weeks I like to go back and put down a second application of crabgrass control. This will ensure that you have covered the entire lawn. One application never works 100% and you may end up with some crabgrass that will seed itself across the rest of your lawn. Trust me the second application really works.
Step# 6 – Weed control
So in closing, follow the above 6 steps to your best ability and transform your Long island landscape into one thatâ??s both extremely easy on the eye as well as maintenance free.
Key Shifts In San Diego County Demographic Patterns – Real Estate Implications
Tuesday, April 20th, 2010On August 15, 2006, the US Census Bureau released its annual statistics for various communities. The data for San Diego County revealed some significant shifts from 2000 to 2005 in terms of the total population in San Diego, the percentage of males to females, percentage of people at various ages, and the racial composition of the County.
POPULATION SHIFTS
Total Population = 2,813,833 (CY 2000) vs. 2,824,259 (CY 2005) = 0.4% increase
Of the total population, there were shifts in the percentage of males to females.
Males = 1,415,097 (CY 2000) vs. 1,400,199 (CY 2005) = 1.1% decline.
Females = 1,398,736 (CY 2000) vs. 1,424,060 (CY 2005) = 1.8% increase.
AGE CHANGES
The percentage of people at various age also changed during this time period.
Median Age = 33.2 years (CY 2000) vs. 34.4 years (CY 2005) = 3.6% increase.
Population Under 5 Years of Age = 198,621 (CY 2000) vs. 221,575 (CY 2005) = 11.6% increase.
Population Under 18 Years of Age = 2,090,172 (CY 2000) vs. 2,067,282 (CY 2005) = 1.1% decline.
Population 65 or Older = 313,750 (CY 2000) vs. 310,836 (CY 2005) = 0.9% decline.
RACIAL COMPOSITION
Of individuals who defined themselves as belonging to one-race, the following statistics were provided:
Total Number of “One-Race” Individuals = 2,681,866 (CY 2000) vs. 2,730,721 (CY 2005) = 1.8% increase.
Individuals who defined themselves as belonging to one-race, were further categorized as follows:
White = 1,871,839 (CY 2000) vs. 1,927,166 (CY 2005) = 3% increase.
Black or African American = 161,480 (CY 2000) vs. 140,181 (CY 2005) = 13.2% decrease.
American Indian and Alaska Native = 24,337 (CY 2000) vs. 19,902 (CY 2005) = 18.2% decrease
Asian = 249,802 (CY 2000) vs. 295,926 (CY 2005) = 18.5% increase
Native Hawaiian and Other Pacific Islander = 13,561 (CY 2000) vs. 12,704 (CY 2005) = 6.3% decline.
Other Race = 360,847 (CY 2000) vs. 334,842 (CY 2005) = 7.2% decline.
Of those individuals who defined themselves as belonging to “two-races”, the following statistics were provided:
Total, Two -Race Individuals = 131,967 (CY 2000) vs. 93,538 (CY 2005) = 29.1% decline.
Hispanic or Latino (of any race) = 750,965 (CY 2000) vs. 843,901 (CY 2005) = 12.4% increase.
SHIFTS IN HOUSEHOLD CHARACTERISTICS
Total Household Population = 2,716,820 (CY 2000) vs. 2,824,259 (CY 2005) = 4% increase.
Average Household Size = 2.73 (CY 2000) vs. 2.71 (CY 2005) = 0.7% decrease.
Average family size = 3.29 (CY 2000) vs. 3.33 (CY 2005) = 1.2% increase.
IMPLICATIONS FOR SAN DIEGO REAL ESTATE
If you are interested in buying San Diego real estate, homes, condos or townhouses for sale, then the above information may be useful to you. The information above can help you understand demographic and population shifts that impact supply, demand, and price of real estate and homes for sale in San Diego.
San Diego is one of the most popular areas in the Country because of its moderate climate. In fact, the year-around average weather in San Diego is around 70 degrees Fahrenheit.
San Diego real estate is also popular because of its proximity to the Pacific Ocean, mountains and the US-Mexico border. Bordered by Orange County and Riverside County to the north, and the Mexico to the south, San Diego real estate has hundreds of beachfront properties for sale.
San Diego is the sixth most populated County in the Nation. With this many people, buying real estate in San Diego can be a competitive process depending on the supply and demand of real estate and homes for sale at a particular time.
While interest rates are still relatively low and supply relatively high, buyers at this time may find San Diego real estate a good value.
Those who purchase San Diego real estate enjoy year-around perfect weather, easy access to the Mexico border, a thriving job market, and the pleasures of living close to an ocean.
Whether you are interested in boating, fishing, golfing, tennis or other hobbies, residents and visitors who own San Diego real estate have access to all these activities and more.
Please visit the Census Bureau’s web site for detailed demographic information about San Diego County. The Census Bureau provides key statistics for various communities in its annual American Community Survey (ACS) report.
Bathroom Remodeling Books, Are They Worth The Buy?
Monday, April 19th, 2010Are you one of the many homeowners who has recently decided that you would like to tackle a home improvement project, such as remodeling your bathroom? If so, do you have any previous home improvement or remodeling experience? If you do not, it is advised that you try and get a little. Perhaps, the best way to do that would be to take a class on bathroom remodeling, but that isnt always possible. A nice and relatively affordable alternate to remodeling classes are bathroom remodeling books. Despite the fact that remodeling books are full of valuable information, you may be wondering whether or not they are really worth the buy.
Perhaps, before you start determining whether or not bathroom remodeling books are worth the buy, you should first familiarize yourself with exactly what they are. Bathroom books, which are also sometimes referred to as bathroom remodeling how-to guides, are printed resources that are designed to assist homeowners with their own do it yourself bathroom remodeling projects. Remodeling books and how-to guides not only give you remodeling ideas and tips, but they also tend give detailed remodeling directions, such as directions on how to replace your bathroom flooring and so on.
Now that you know what bathroom remodeling books are, you may want to start examining whether or not you should buy one. Honestly, it all depends on a number of different factors. Bathroom remodeling books or how-to guides come in a number of different formats. There are some books that list information and directions on multiple bathroom projects, while others tend to only focus on one or two. If you are looking to have the majority of your bathroom remodeled, it may be a good idea to purchase a book that covers a number of different projects and visa versa. The best way to make sure that a bathroom remodeling book is money well spend is by making sure that you purchase a book that you can use.
Speaking of a book that you can use, it is not only important to examine the projects that are outlined or explained in a remodeling book, but it is also important to examine how they are outlined or explained. For instance, would you be able to read a detailed set of written directions or would you like to see those directions shown in pictures. While a large number of bathroom remodeling how-to guides have detailed pictures with their directions, not all do. Once again, you will not waste your money and purchase a bathroom remodeling book that will not do you any help.
Another thing to consider, when determining whether or not kitchen remodeling books and how-to guides are worth the money, is their price. How-to remodeling guides can be purchased online, from most home improvement stores, and most books stores. Each of those locations is likely to sell different books, for different prices. Despite the variation in costs, you will find that most traditional bathroom remodeling books, the ones that tend to focus on a number of different projects, sell for as low as ten dollars. If you are looking for a more detailed remodeling book, you may need to pay a little bit more money. Most specialty bathroom remodeling books start out selling for around fifteen or twenty dollars. Of course, you need to remember that some books will sell for less and some books will sell for more.
From the looks of it, you may be thinking that bathroom remodeling books are more than worth the buy. In most cases, you will find that you are right. However, it is also important to note that you should be able to find the same information online, without having to pay a dime. If are looking to save money, instead of purchasing a remodeling how-to guide, you may want to think about performing a standard internet search online.