We are selling our Mom's home on our own as she passed away. We have an offer that is possible, but our attorney is away this week to consult- The prospective buyer has asked us not to show the house to anyone and have a handshake contract now and he wants to go in the house and start drawing plans to expand the home but he has ignored our request to make a deposit on the house- I do not think it is appropriate to let him do this without anything signed. And I do not think that the house showing should be stopped for a 1000.,00 deposit- Our atty said he should put up 10 percent. Any ideas on this deal? Thanks.

Just tell him bluntly, no down payment as to what I want, no deal for you to go inside the house and do your planning.

No way. Handshake agreements, while very noble in concept, usually end in trouble. Do not take the house off the market or do anything until you get a signed offer and an escrow check in your possession.

If you knew this person well that might be different, but if they are a stranger, then absolutely not.

If they won't give you a deposit that's a huge red flag. I would give them 24 hours to present you with a contract and escrow check or move on completely.

Under no circumstances give them access to your house other than through set real estate channels. If they want to sketch the house, tell them to have their agent make an appointment and do it then, or get a copy of the last survey either from your records or the city.

If it looks fishy and smells fishy, it's fishy.

Typically they would put $1000 or more into an escrow account that you keep in case of default. 10% seems steep as an initial deposit, unless you are doing the financing for them. Assuming that's not the case, they would pony up the entire purchase amount, plus closing costs, less the escrow deposit at the official closing, which is usually within 30 days of receiving and agreeing on a contract.

YOU'RE the seller, it's YOUR house, YOU decide.
If this potential buyer was really serious, then he would have no objections putting a cash down. I agree with whiskeyman510 that 10% might be too much. Maybe the buyer is a bit put off by that. Try a round number like $500 or $1000 depending on the value of the house. This buyer is only looking out for his own interest. On the other hand he might be taking advantage of your emotions towards the situation. By not showing the house to someone else you might pass up potential buyer who are willing to pay more for your house.

I think you will want peace of mind knowing you sold your mother's house to someone who deserves it and will be happy living in it. Continue advertising the house until you have a SERIOUS buyer who is willing to buy YOUR house on YOUR terms!

My condolences to you and your family. Good luck!

Rose

dont do anything or let him do anything without your attorney present and a written contract, if you do you will be sorry

Verbal contracts are recognized in court for everything EXCEPT real estate contracts. If you don't have it in writing, you don't have it at all as far as the law is concerned. If your lawyer doesn't have time to handle this sale, you should either hire a Realtor or another attorney. Many Realtors will handle contracts between buyers and sellers for a flat fee if you have already found the buyer.

You can show your house to anyone you want any time you want. Once you do have a written contract, you can still show the house (20% of real estate deals never close), but you should tell the prospects there is a contract on the house and that if they were to make an offer, it would be a back up contract that would only be effective if the first contact failed to close.

Good Luck!, Sorry for your loss

Listen to your attorney! It is not Wise to let them in the home without the seller or the Realtor present. What happens if something is damaged while they are there? What happens if they slip and fall?

Your attorney has your best interests at heart, listen to him/her!