Just to get a quick pulse of the market. When you all are buying/selling, what are EMD % you are seeing as of late?
Or better said, what percentage of the purchase price are you putting down/asking for, for an earnest money deposit?
Thanks as always
This is super market specific. Local to me Solano county might be $1000, Alameda 3%, and I could see both on the same day and think both normal.
Whoops...let me move this to the apartments thread.
California- San Francisco Bay Area here and 3% is the "norm" for EMD in this market.
$5,000 under $400k
$20-$25k for $600k-$1 milllion
$50k over $1 million
If I want a property, I'll offer 10-20K earnest money. I don't do many offers and when I do, I really target that property and make sure that the seller knows that I'm serious.
Originally posted by @Russell Holmes :
@Russell Brazil those ranges sound like what I've seen in my market as well working on my own and with my mentor broker (she's in a high-end 6-figure to occasional 8-figure market). To add to the question, are most EMDs 100% day of offer acceptance or $1000 (or $5k on a $50k emd) day-of and remainder within 3-5 days? I can see the thinking behind all up front from the seller's standpoint but from the buyers it's a way to be serious without tying up the full EMD if the deal gets weird and EMD tied up. 3 days isn't much to wait on the remaining EMD for seller to know it's in escrow. My mentor says that she writes offers both ways depending on an array of factors, but the immediate EMD is definitely a more solid offer on a hot property.
In my market we dont stagger the EMD amounts. They are whatever we put in the contract, then need to be deposited in a certain time frame as dictated by law, and that changed with who holds the EMD and what state we are in. For instance on the Virginia side of the border I believe it is 5 days. On the Maryland side of the border, it is 7 days if title company holds the EMD, and 3 days if the brokerage does. DC I think mirrors Maryland.
@Russell Brazil oh wow, that is interesting how different each state is. I don't think I noticed before that you are licensed in two states, that must make things quite interesting as details vary.
In FL EMD can be all on the day of offer acceptance, or an amount at that point and then the remaining amount in a specified number of days. I don't know if there is a limit on how long that can be, but I would imagine too long would defeat the purpose, I haven't heard of one longer than 5 days. If the line is left blank the standard is 3 days. I've submitted a few offers on investment properties with a $1000 day of offer acceptance and another $4000 or other amount within 3 days. This has just been in cases where the listing makes it sound as if it is going to be difficult or impossible to coordinate showings of units, basically leaving something on the table to encourage being able to quickly view the property before fully funding the EMD. If offering on a move in ready home for an owner occupant that we've already walked in person, I would encourage a full EMD on the day of offer acceptance as delays would seem to be unnecessary negatives to the offer.
@Christopher Munn our market is not so tight as most so I generally aim for about 1%. The property I just closed on though the contract price was $370k and I put down $500 so that one was .13%. But I closed it so the result is the same.
@Russell Holmes it was a thirty day close with a local bank financing it. It was a special situation though. I honestly would have probably put $4-5k but my agent just put in what we would normally offer on a house. The seller was a family that had owned the property for over 70 years so not a lot of experience there and I think the agents involved all knew me and knew I would close so weren't concerned.