How much earnest money for a duplex?

Question

Hello,

I am working on getting an offer in for a duplex for a potential house hack. I have run into a scenario where a friend of mine who is a real estate investor who is doing well recommend me to put down a good amount of earnest money. 10k-15k... The offer I am putting in is going to be for 185k. A realtor that I am working with says that earnest money is not usually that important but advises to put 1k. I believe that I should put down something to show my seriousness in wanting the property. Based of others experiences in acquiring duplexs, how much earnest money did you put in?

Thanks in advance!

Matthew Crivelli · Answer

10k - 15k?! Bro - tell them $500! @Adam Pervez

If the deal falls apart and you lose $500 its not a big deal. If you put down 15k you better be sure as hell you are going to be the new owner.

Aaron Gordy · Answer

Earnest money is very important. If your realtor told you that it wasn't important then that should be a red flag. The amount of earnest money is dependent upon the demand for the property. Typically 1% is sufficient

Randy Gutierrez · Answer

$1500 is what I have always put.

Jay Voorhees · Answer

I've seen this as high as 3%. $15k does seem steep. If your contingencies are all in place, there should be no added risk to a higher deposit. Just make sure it is properly protected.

Derek Roche · Answer

I put 1k down earnest with my offer of 115k in Rochester NY. how confident do you feel about the property? And how serious are you on the deal? How much would you be able to walk away from if an inspection came back poor? As stated above, You might have to walk away and loose your earnest money, inspection fees, etc "cost of business". But that might not be the worst thing in some scenarios.

Eliott Elias · Answer

Depends on how aggressive you want to be. Typical is 1% of purchase

Conner Olsen · Answer

We advise our buyers put down 1-2% for properties in Austin.

Scott Allen · Answer

@Adam Pervez 1-3% of the purchase price

Andres Murillo · Answer

3-5% is usually what I advise in order to be competitive. You want to put the seller's mind at ease that you're not the type of buyer to cancel because of lack of funds.

Adam Pervez · Answer

Right?? I thought the amount was really high. I was leaning towards 1% of the purchase price with the right contingencies.

How much earnest money for a duplex?

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