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Answers (16)
Best Answer
- wetdawgs
- Contributions:26852
When the market was hot (a few years ago), large earnest money deposits (10% for example) were a sign of sincerity. At the moment, it is more a buyer's market and it is not common for 10% earnest money. However, you need to get details for your area.
However, you are low balling with an 86% offer, so signs of sincerity may be a good thing.
However, you are low balling with an 86% offer, so signs of sincerity may be a good thing.
- James Berman, "TheNJRealtorGuy"
- Contributions:198
Yes, no matter what the market is like, it is normal for split deposit over 5% down. Buyers do it for the most part so they don't part with all their money up front and because they have other reason to make their mortgage payments lower. But as seller the most important part is that have the mortgage commitment.
- Suzanne DeTurris, "SuzanneDeTurris"
- Contributions:93
Yes, it is fairly standard...although depending on the seller and sellers attorney you can put down less. As a listing agent though... I would be wary of someone putting a small amount down unless there were other circumstances that made it safer....and I'm sure the selllers attorney would also be wary.
- Kathy Yannes, "kathyyannes"
- Contributions:25
I agree that the more you put down the more sincere you appear. Having said this, many parts of the contract are negotiable including the deposit money.
- Nicaury Miller, "Home Styles Realty"
- Contributions:51
The offer can reflect what ever percentage you want. The more money you put down as good faith shows to the seller how serious you are about the property.
Nicaury
Nicaury
- Francesca Patrizio, "PatrizioRE"
- Contributions:132
Vn and West,
I am furious with websites that appear to give the approximate value or guesstimate the actual neighorhood vaue and 9 times out of ten they are grossly inaccurate as it pertains to value.
Having said, I've come across numerous investors who are "greem" as to true value and are ignoriong mu advise, but will enenvually will proclain "she old me so."
As frustratred as u?
I am furious with websites that appear to give the approximate value or guesstimate the actual neighorhood vaue and 9 times out of ten they are grossly inaccurate as it pertains to value.
Having said, I've come across numerous investors who are "greem" as to true value and are ignoriong mu advise, but will enenvually will proclain "she old me so."
As frustratred as u?
- Linda Strasberg, "L Strasberg"
- Contributions:2315
In our market...you should be willing to show a decent size EMD if you'd like your offer to be reviewed and considered.
- Donald Patterson, "donpatterson"
- Contributions:37
I agree with all those who cautioned that "normal" is as you define it. Surely, with a discussion you have already had with your broker, you have come to some conclusion. No area norm nor advisory amount can substitute for structuring your deposit in a way that YOU conclude will convince the seller--not just of your sincerity, but of your ultimate goal: to own that house. By the way, should you happen to continue with this thread by reading it again, you will note that the overriding theme is "get in there and do it." You'll learn far more my having your broker place the bid than in speculative surmise. . .
- Francesca Patrizio, "PatrizioRE"
- Contributions:132
Vin75,
There is a 1st deposit and a 2nd deposit (usually due 14 days after atttorney review, post home inspection), then the remainder is due at closing. Here in Monmoth County, we offer traditionally offer $1k for 1st deposit and $9k as second and the remainder at closing on a traditionall ad not a short sale or bank owed property.
However, with today's economic conditions, u may find that as seller's attornenies will require (in addition to the prequal) a "proof of funds" in an effort to feel more secure about the deal .. . . and frankly, who can blame them as who would want to take their home "off the market for month" only to lean that the potetial buyer cannot produce.
Love and Peace,
[content removed by moderator for being self promotional]
There is a 1st deposit and a 2nd deposit (usually due 14 days after atttorney review, post home inspection), then the remainder is due at closing. Here in Monmoth County, we offer traditionally offer $1k for 1st deposit and $9k as second and the remainder at closing on a traditionall ad not a short sale or bank owed property.
However, with today's economic conditions, u may find that as seller's attornenies will require (in addition to the prequal) a "proof of funds" in an effort to feel more secure about the deal .. . . and frankly, who can blame them as who would want to take their home "off the market for month" only to lean that the potetial buyer cannot produce.
Love and Peace,
[content removed by moderator for being self promotional]
- Vin75
- Contributions:26
I went through with the offer, I think in this case since my offer may be considered a lowball then maybe the 10% is a good idea that can show how serious I am about the offer. She is submitting the offer tomorrow I explained to my agent that I am willing to negotiate.
- Mike Hancock, "MoyeRealty"
- Contributions:83
Vin,
If you are meeting her tonight just don't be afraid to ask all questions until you are satisfied with the answer. Your agent should be understanding of this as purchasing a home is no small matter. It's hard to say what to ask, but be certain to make her take her time and explain ANYthing that requires your signature. Ask again if you don't understand. Again your agent should not mind this. Good Luck to you.
If you are meeting her tonight just don't be afraid to ask all questions until you are satisfied with the answer. Your agent should be understanding of this as purchasing a home is no small matter. It's hard to say what to ask, but be certain to make her take her time and explain ANYthing that requires your signature. Ask again if you don't understand. Again your agent should not mind this. Good Luck to you.
- Georgia New Homes
- Contributions:68
There's no standard, as all things are negotiable amongst the parties. If you negotiate a 10% upfront deposit, then the remainder would be due at closing if you are obtaining an 80% loan.
- Vin75
- Contributions:26
I haven't signed anything yet. I am meeting the agent tonight. She has asked me for a check for $1000 which she will hold and will be refundable. All I've done so far is let her know I would like to place an offer for 370k she asked me how to write it up and when I asked her what was normal she said that she has people put up 10% then the remaining 10% at close. Since this is the first time I'm buying a house, is there anything I should be asking here?
- Mike Hancock, "MoyeRealty"
- Contributions:83
Your Agent should be able to help you with ALL of your questions or direct you to the professional who can. If you have already put in an offer, then I am assuming you signed a contract to buy with that agent, that being the case you can terminate the contract and buy with someone else, but I would give my agent every chance to set my mind at ease if I were you before going though that
- Vin75
- Contributions:26
Sounds like I need more help than I realize here is the details of the house I'm looking at.
Asking price 429k
offer 370.
Been on the market since January and is currently being rented.
20% being put down,
preapproved for a lown credit score of 758. first time buyer.
I am I required to go through the person who showed me the house? The house is listed through one company but I am putting the offer through weichert because they are the ones showing me the house.
What is expected of the offer?
No, that's not "normal" though no two transactions are alike. If you're being told this is "standard practice", my advice is "run and get a RE broker you trust."
When making an offer with 20% down is it normal to give 10% upfront then the rest at close?
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