Keith A.
Rental Property Investor · TX · Member since 2019 · 236 posts · 392 votes
7y
I would expect a counter-offer from the seller with the $100 scratched out and changed to 1% of asking price.
0 Reply
Sara C.
Realtor · Decatur, GA · Member since 2017 · 135 posts · 92 votes
7y
Yep, it can be anything - but "typical" is 1% of your offer price.
1 Reply
Raven Henderson
Real Estate Agent · Memphis, TN · Member since 2019 · 59 posts · 40 votes
7y
I always include $1,000 earnest money on my contracts.
4 Reply
Gregory Jerome
OP
Flipper/Rehabber · Woonsocket, RI · Member since 2016 · 28 posts · 8 votes
7y
@Raven Henderson that’s what my seller wanted, I thought it was alittle too high but I guess not
If the deal for some reason doesn’t fall thru will I be entitled to get my earnest money back?
0 Reply
Raven Henderson
Real Estate Agent · Memphis, TN · Member since 2019 · 59 posts · 40 votes
7y
No, thats typically the amount that is offered. Earnest money is essentially a "good faith" deposit demonstrating to the seller that you have great intentions to buy the property. Depending on the wording of your contract, you may or may not get your money back if your deal does not close. Are you wholesaling the property to an end buyer?
0 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
I usually offer 10K EM deposit. This shows the seller I am SERIOUS about buying their property and have no intention or backing out and wasting their time.
1 Reply
Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
3% of the purchase price in my area. Min 1% of purchase price. The deposit is to show how serious and committed you are to the deal.
1 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y
In my area,
Purchase Price - EMD
$200k & under - $2500
$300k - $5,000
$400k - $10,000
$750k & up - $25,000 or more.
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3 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
7y
all depends on your area and other terms in the contract. But I would laugh at $100 or even $1000.
In my markets with aggressive terms is somewhere between 2.5%-10%.
0 Reply
Matt Carey
Investor · Brandon, FL · Member since 2017 · 178 posts · 67 votes
7y
@Gregory Jerome
100? Hahahaha. At least 1k. If you don't have it, then you are telling the seller you don't have enough to close.
1 Reply
Amy A.
Portland, ME · Member since 2012 · 616 posts · 550 votes
7y
Don't feel too bad. During the recession I saw $100 deposits often. This was from people with zero down financing, such as VA or RD mortgages. Heck, I'd even reimburse the buyer for their inspections and all closing costs. Anything to make the sale! Now, in a seller's market, deposits are higher, as you've seen in the other comments.
1 Reply
Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Gregory Jerome you can offer whatever you want but if you offered 100 bucks I’d counter at 5k non-refundable so you could stop wasting everyone’s time.
500-2000 is normal if it’s 100k or less I would say. Adjust that up if it’s more
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
Customary in my area is $500 for properties under $300K which is pretty low. I drop $5000 on deals and my offer stands out. You can offer whatever you want, but $100 versus $5000, who would you think is more legit?
1 Reply
Ryan SpathBusiness Member
Real Estate Agent · Boise, ID · Member since 2017 · 585 posts · 381 votes
7y
@Gregory Jerome
$1,000 at minimum if not 1%. The higher dollar amounts will be taken more serious.
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0 Reply
Gregory Jerome
OP
Flipper/Rehabber · Woonsocket, RI · Member since 2016 · 28 posts · 8 votes
7y
@Raven Henderson yea, I have a landlord that wants me to bring him a property under contract
The earnest money is where I’m having the problem
I guess I could just keep working and saving my checks until I have 2-4K to spend
From the replies it seems like earnest money is pretty much a down payment on the house
The cost of the house I’m looking at is 70k
So I was hoping to invest $100-$700 in earnest money and quickly try to sell the contract to my end buyer
But some of these replies say 2k-5k
I wasn’t expecting that just for earnest money.
0 Reply
Gregory Jerome
OP
Flipper/Rehabber · Woonsocket, RI · Member since 2016 · 28 posts · 8 votes
7y
@John Thedford 10k? Earnest money? 😯
Are we talking about a million dollar house here ?
0 Reply
Gregory Jerome
OP
Flipper/Rehabber · Woonsocket, RI · Member since 2016 · 28 posts · 8 votes
7y
@Syed H. So the house I’m looking into is 70k, u would want 10 percent as the EM deposit ?
I thought it was 1 percent
0 Reply
Gregory Jerome
OP
Flipper/Rehabber · Woonsocket, RI · Member since 2016 · 28 posts · 8 votes
7y
@Caleb Heimsoth yea the property is 70
Thanks for the advice
0 Reply
Gregory Jerome
OP
Flipper/Rehabber · Woonsocket, RI · Member since 2016 · 28 posts · 8 votes
7y
@Joe Splitrock the house needs a lot of work and I plan on selling it to one of my buyers
On a house thats 70k and needs a lot of work would u still drop 5 grand in earnest money ?
Or would u just try for 1% or 2%
0 Reply
Nathan Williams
Member since 2019 · 172 posts · 93 votes
7y
a local agent would know whats standard/appropriate for your area. Do you have one?
0 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
7y
Originally posted by @Gregory Jerome:
@Syed H. So the house I’m looking into is 70k, u would want 10 percent as the EM deposit ?
I thought it was 1 percent

Like I said it all depends on location & other terms.

0 Reply
Tyler Bushey
Investor · Biddeford, ME · Member since 2017 · 282 posts · 180 votes
7y
On market - 1%
Off market - $1,000 flat amount
0 Reply
Mark S.
Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 475 votes
7y
@Gregory Jerome I would never offer or accept such a low amount for EM. As a buyer it doesn’t show that you are either serious about buying or have the money. As a seller it isn’t enough to
take you seriously. I offer $10k as a buyer and won’t accept less than 2% as a seller. I don’t understand how people get hung up that they are ‘putting that much at risk’. You will either use it as part of your down payment or get it back if the deal doesn’t close due to contingencies.
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Gregory Jerome it doesn’t matter to me how much I pay in earnest money as long as I have contingency to get out for inspections and financing. I end up putting 20% or more down on the deal anyways, so $5000 is going on one way or another. As long as you have a way out of the deal in the contract, your money is not at risk. Maybe on a $70k deal you do $2000 or whatever. The point is more cash shows you are more serious.
1 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
In my area if it’s under 50k it’s 500
Over 50k it’s 1000
0 Reply

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