Embedded Files
NMLS: 253889 - DRE: 01450808
How much do I need for the Deposit?
How much do I need for the Deposit?
The deposit is offered by the potential buyer when entering into a contract to purchase. This earnest money is a security for the buyer that the seller will not sell the property to anyone else while under contract.
A great deal depends on what market you are in. In a seller's market, the seller will be looking for bigger deposits because that shows a greater commitment from the buyer, but in a buyer's market, you have the leverage to come in with little or even no money down when it comes to the deposit.
There is not an exact number for the deposit amount, but the general rule of
thumb is between 5 and 10 grand. If you are buying a property of $600k it is probably more like 20 grand, you want to put down a bigger deposit to show you are serious.
The funds provided by the buyer are usually held in an escrow account that’s managed by a title company or real estate agent. As the transaction moves forward, the deposited amount is then applied to the buyer’s down payment at closing (or other cost associated with the purchase), so you just need to bring the difference when it is time to close. Don't worry your deposit is completely protected unless you release your contingencies.
If you want to know more about your deposit, you know you can call me, I will make it simple and safe!
Page updated
Google Sites
Report abuse