Earnest Deposit


Once you determine how much you want to offer and any contingencies to protect you, the next step is to determine the earnest deposit you will include with your offer. You want the earnest deposit to be enough to show the seller you are serious, but not so large you risk losing too much money should there be a problem. I suggest between one and two percent of the offered price.

As with practically everything in real estate, there are exceptions to this rule, too. If the market us active could be more than one offer the seller is entertaining. A large deposit may say to the seller that you are not only serious but also have the financial stability to qualify for the loan and buy the home. The seller could accept your offer even if another came in a bit higher if the other offer had a low earnest deposit.

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