Profile picture for SusanL35

Purchase Price of the house $100.000. How much earnest money?

My husband and I are interested in a property. We talked with the agent and he told us to pay $1000 earnest money(?) (the bank would require this) if we put in an offer.

We are first time home buyer and we are not sure, if we really have to pay so much.




  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 22 2011 - Ann Arbor
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (10)

Earnest money is typically 1%, so $1000 is about right on a $100,000 home.  You could certainly offer an earnest deposit of less, but the offer will not be as strong as if you were providing the $1,000. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 08 2011
Like a lot of the other agents have said, it really depends on what area you're in. 

I live in Spokane, WA and a house that's selling for $100,000 I can usually get sellers to agree to an earnest money of only $500 but a few have said that they wouldn't take less than $1,000. 

There is no reason why you should have to fork up more than $1,000 if it's a traditional sale.  Hope this helps but remember, talk to your real estate agent too, they should have good in put for you.  Good luck with your purchase!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 27 2011
Profile picture for sunnyview
In my area, you put down 1-2% depending on the price of the house. On 100K, $1000 is pretty typical and not out of line at all. Just make sure you know who will be holding your deposit.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 23 2011
1% is typically what I recommend to my buyers as the minimum, regardless the type of sale; however, as a listing agent, on my short sales, I do sometimes get buyers offering only $500 or $750 EM.  I usually do recommend to my sellers at that point, however, to counter-offer on EM to at least $1000. A buyer, no matter the type of sale (regular resale, short sale, foreclosure), needs to have a little "skin in the game." Keep in mind that you're also asking the seller to take their house off the market and, effectively, pass on any other potential offers they could have gotten. They need some assurance that you are serious and won't walk away after a few weeks or months of lost market time. And don't forget, you'll see that EM again credited to you at closing as money you're already paid toward the purchase of the house. Enjoy your new home!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 22 2011
On the west coast of Florida the typical deposit is $2,000 to $3,000 which is about 1% of the purchase price. It all depends on the terms of the offer.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 22 2011
Here in California, earnest money deposit is generally 2% or 3% of the purchase price, sometimes it can be as low as the 1% your agent suggested. Also, check with your agent to see if you can do an electronic transfer of funds, again, in Southern California this is preferred. The funds aren't transferred until buyer and seller sign the contract at which point the buyer has 3 days to transfer the funds to the escrow holder, no check is needed! This may be different in your state; ask your agent for all the options and review the purchase contract, this should be a stipulated item. The earnest money is part of the total amount you will need to close on the property, so don't worry, it's not additional out of pocket money. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 22 2011
Hello! Typically I see earnest money deposit of 3% of the offer amount. $1,000 is on the low end. Some banks are requiring as high as 10% earnest money deposit (especially if you're paying cash for the property).
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 22 2011
Typically one percent is the standard. However, I have quite often had the sSeller accept $500.00.   The bank wants to make sure you are a serious buyer and its harder to walk away from $1,000.00 if you change your mind.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 22 2011

$1,000 is what I would suggest.  Depending on the type of loan you are getting you are going to have to bring that money in anyway.  If you decide to back out after inspections you will receive that money back.  It shows the seller that you are a serious buyer.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 22 2011
Don't often see less than $1,000.  You want your offer to look attractive to seller.  Also have mortgage pre-approval letter from lender.  EMD goes towards the money you must bring to close, so relax and concentrate on the bigger picture
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 22 2011
 
Related Questions
What fees are there for cash purchase?
Profile picture for Joanne McCoy
Latest answer by Joanne McCoy
August 15 2013 | 4 answers
Can anyone tell me a little bit about the South Eastern Part of Ann Arbor, MI?
Profile picture for Alexander Munro
Latest answer by Alexander Munro
October 17 2012 | 1 answers
Purchase Price of the house $100.000. How much earnest money?
Profile picture for Lynne  Horner GRI, ABR, SFR
Latest answer by Lynne Horner GRI, ABR, SFR
November 08 2011 | 10 answers
Any advice? Mortgage possible?
Profile picture for Chad Basinger
Latest answer by Chad Basinger
December 09 2010 | 6 answers
Is it ethical for loan officer and real estate agent to work together marketing foreclosed house?
Profile picture for Wayne F. Smith
Latest answer by Wayne F. Smith
March 02 2009 | 7 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 2916 Barclay Way, Ann Arbor, MI Home For Sale
    2916 Barclay Way, Ann Arbor, MI 48105

     For Sale: $189,000

    • Beds: 2
    • Sqft: 1120
    • Baths: 2.0
    • Lot: --
  2. 1145 Freesia Ct, Ann Arbor, MI Home For Sale
    1145 Freesia Ct, Ann Arbor, MI 48105

     For Sale: $320,000

    • Beds: 2
    • Sqft: 1879
    • Baths: 2.0
    • Lot: --
  3. 1215 Newport Rd, Ann Arbor, MI Home For Sale
    1215 Newport Rd, Ann Arbor, MI 48103

     For Sale: $224,900

    • Beds: 3
    • Sqft: 1025
    • Baths: 2.0
    • Lot: 11761