Posted on: 01st Jan, 2010 06:19 pm
With a house value of $89K, is $20 considered an earnest deposit?
not in any real estate deals i've ever seen it isn't. i've seen deposits as low as $500 for first time homebuyers, who typically are scraping to begin with. but $20? not on your life.
Hi Lorraine!
Welcome to forums!
The main reason to provide the earnest deposit is to impress the seller of the property that the buyer really wants to purchase the property. The earnest deposit varies from purchase to purchase and also depends upon different factors. A buyer may make a larger deposit in order to convince the seller that their offer is stronger than the others. When the real estate market was good, buyers had to make higher payments as earnest money compared to now when the market is slow. You can contact your real estate broker who may help you in deciding how much you need to pay as the deposit.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The main reason to provide the earnest deposit is to impress the seller of the property that the buyer really wants to purchase the property. The earnest deposit varies from purchase to purchase and also depends upon different factors. A buyer may make a larger deposit in order to convince the seller that their offer is stronger than the others. When the real estate market was good, buyers had to make higher payments as earnest money compared to now when the market is slow. You can contact your real estate broker who may help you in deciding how much you need to pay as the deposit.
Feel free to ask if you've further queries.
Sussane
