What is an appropriate deposit for a $1.75M property to place it under contract?

4 Replies

What is an appropriate escrow amount to place a $1.75M multifamily property under contract?

Obviously, I want as low as possible. The Broker suggested $25K which I can do, but I would prefer to offer $10K as it will likely be tied up for a few months.

Thank you,


I don't deal with deals this size or with listed property very often but I just did a $345k off-market deal with zero deposit and zero cash down. Offer the $10k first. They may counter.....they may not.

@Toben B.  

  depends on your market.. In California you would need 50k minimum.. In my state of Oregon 20k plus.  and in many really hot markets 10% of ask.. If you don't have 10% you can't buy anyway because you need 25 to 30% down ..  now if this is a slow market then anything goes.

It depends on the size of the property. 10 million usually about 1 to 2% EM. We put a lot of stop gaps in where only certain amounts of that go hard once certain contingencies are lifted.

It's not just about the amount but the written language in the contract for EM.

25k is reasonable for 1,750,000.

I would care more about the borrower then EM only because if it's someone trying to buy a 1.75 million property but liquidity and net worth is weak then I don't like my chances of the buyer closing. I would want non-refundable down for a weak borrower. If they are going to tie my property up they will have to pay for it. They can't perform I get compensated or else I wait for a stronger buyer to come along of put in a " right to continued marketing clause where I can kick them out at anytime ". A weak buyer or one doing a longshot type structure to close isn't that valuable for a seller.

Some of my clients that are very high net worth the sellers and brokers love the calls from me because they know I have good buyers who can close. If you get a call from a buyer saying can you do this, this, this longshot type stuff the sellers are tired of it.   

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