Offering Large Earnest $$$

[John Williams]

Does offering a large amount of earnest money hurt your ability to negotiate a lower sales price?

I was thinking about offering $20k in earnest money on a $180k house. They are asking for $185 and $1k in earnest money. I want to show them that I am serious but I don’t want them to think I can afford/I am willing to pay $185.

Should I or should I not offer a large earnest deposit???

Thanks!

[Don Konipol]

@John Williams

Depends on the particular market and market cycle. Large earnest money, more than anything else, indicates that the buyer is not one of these guys trying to get 100% financing with a low probability of being able to successfully close the deal.

If a seller is setting his price by an individual buyers ability to pay, he’s far out in left field.