Question: “Does a $15,000 deposit on a $1,000,000 home seem low to you?” Answer: No. An average deposit is about 1 to 1.5% of the purchase price. So that deposit sounds right.
Question: “How much should my deposit be?” Answer: Great question! In my experience, I’ve found that 1% of the purchase price is the minimum acceptable deposit. But if you really want to impress the seller to help your offer get accepted, you might want to do 2-3% of the price.
Question: “We’re going to make an offer on a home for $875,000. How much do you think our deposit be? Is $2500 too low?” Answer: Yes! The seller won’t take your offer seriously with a low deposit like that. Deposits are typically 1 to 2% of the price. When I represent a homeseller, I insist
Tuesday, 05 August 2014 by Gary Kent
Question: “How much is a normal deposit when you make an offer on a house?” Answer: A typical deposit is 1-2% of the purchase price. But just because it’s typical doesn’t necessarily mean it’s the approach you should take. Offering a bigger deposit, say over 2%, is a way of making your offer appear stronger
Question: “How much deposit am I required to make to have a binding contract?” Answer: This may surprise you and many readers, but you’re not legally required to make a deposit at all. While contracts require what is called “consideration” to be valid, that doesn’t mean you need to have a deposit. Per the good
Question: “How much should my deposit be? And if they accept my offer but the home doesn’t pass the inspection, do I get my deposit back?” Answer: A decent deposit is 1% of the offered price. If you want to show the seller you’re serious (that’s why it’s called an “earnest” money deposit) you might
“On what date can the buyer no longer back out without penalty?” Answer: It depends on the contract. It’s often the 17th day after acceptance, but your case could be different. Let me address a related issue… Many agents tell their clients, “if the buyer cancels, you get the deposit.” This is not necessarily correct.