5,230,113
In my area, it's typically 1% of sales/list price. If it's a bidding war - then, it's finding the right number for the Due Diligence fee that demonstrates to the sellers that our buyers are putting some serious skin in the game to buy their home!
Even in bidding wars, the EMD stays in that 1% range - it's the Due Diligence Fee that we tweak.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
-
Inna Ivchenko
Encino, CA
-
Doug Dawes
Topsfield, MA
-
Abby Stiller
Cape Coral, FL
-
Brenda Mayette
Glenville, NY
-
Kathleen Daniels, Prob...
San Jose, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Peter Testa
Danbury, CT
-
Nina Hollander, Broker
Charlotte, NC
-
Richard Weeks
Dallas, TX
-
Bob Crane
Stevens Point, WI
-
Michael Jacobs
Pasadena, CA
4,572,183
There's no magic number in my opinion and the earnest money "custom" is usually dictated by area. Typically in our area it has been 3% of purchase price and in some situations higher in order for an offer to "stand out" in a competitive situation. This can be a hefty hunk of change.
I remember a real life situation where I was representing a buyer making an offer on a listing just beyond our "normal" market area where the listing agent/broker was also the property owner who requested $1000 as emd(earnest money deposit) even though that was a percentage that was much less than the typical percentage. Knowing local nuances makes a difference.
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Bob "RealMan" Timm
Minot, ND
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Inna Ivchenko
Encino, CA
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Doug Dawes
Topsfield, MA
-
Abby Stiller
Cape Coral, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Peter Testa
Danbury, CT
-
Ron and Alexandra Seigel
Carpinteria, CA
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Nina Hollander, Broker
Charlotte, NC
-
Richard Weeks
Dallas, TX
-
Bob Crane
Stevens Point, WI
4,882,355
EM just one part of the puzzle, plus always the sellers decision.
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Candice A. Donofrio
Fort Mohave, AZ
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Nina Hollander, Broker
Charlotte, NC
5,104,931
I don't care much about earnest money. I care about the due diligence fee offered to my sellers... that's the real skin in the game for a buyer. Typically, we look for about 1-2% of the purchase price in combined DDF and EM and I prefer the greatest portion to be allocated to DDF.
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Peter Testa
Danbury, CT
-
Ron and Alexandra Seigel
Carpinteria, CA
5,216,409
No magic number as a set rule. Sometimes small and sometimes large.
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Nina Hollander, Broker
Charlotte, NC
4,333,772
If you are referring to a down-payment it's usually 5-10% of the purchase price at contract signing. If you're referring to a deposit along with the Sales Agreement, then it's 0 - We don't give deposits and go straight to contract after home inspection...
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
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Nina Hollander, Broker
Charlotte, NC
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Lawrence "Larry" & She...
Plainview, NY
469,510
The number that helps a seller choose your buyer's offer over another's.
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Bob "RealMan" Timm
Minot, ND
-
Peter Testa
Danbury, CT
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Candice A. Donofrio
Fort Mohave, AZ
5,583,278
we look at the whole picture, including the length of the closing and the conditions to be satisfied..... the clean deal is the favorite and the deposit reflects that.... we like seeing a 5% deposit....but it's a case to case decision.
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Nina Hollander, Broker
Charlotte, NC
628,814
Depends on the property and motivation & how serious the Buyer wants to show good faith via the EMD to the Seller.
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Nina Hollander, Broker
Charlotte, NC
2,436,099
There is no standard here. Some agents indicate their sellers need a certain amount or certain percentage, but often, it's up for negotiation.
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Nina Hollander, Broker
Charlotte, NC
3,626,530
The biggest one I've seen is around 5K, unless it is a commercial sale
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Nina Hollander, Broker
Charlotte, NC
6,393,609
Ask them how serious they want the seller to take their offer.
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob Crane
Stevens Point, WI
1,196,798
For a total, I like to see 5% if possible. That's not a hard and fast as I've seen less and more
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Doug Dawes
Topsfield, MA
758,035
Here in CT the standard is 1%.
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
1,052,211
Depends on the property and the deal. Since earnest money is usually refundable during due diligence, my opinion is it should be a good amount to show good faith -- that's what EM is. I've seen up to 50,000. I've seen 25,000 non-refundable from the beginning. I've seen 500 and on occasion it has been okay. It's a skin in the game thing. But it's never one-size-fits-all.
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
5,772,575
Paul,
No magic number, it is one of those it depends situation. A
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Richard Bazinet /MBA, ...
Scottsdale, AZ
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
1,598,452
$5000 and 2nd = 10%
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
2,781,173
There has to be a reason for me to ask for a large sum. $500-$5000 usually does it but more importantly is to read the people behind it all i.e. can they perform? Are they real? Trouble? Fast close? Short close? etc.
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
1,622,432
Almost always 3% here.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Inna Ivchenko
Encino, CA
785,475
I've seen from $1,000 up to $100k. For small lots typically is $500
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
911,338
1% of sale price is common, but there is no set amount. Some buyers will use a high amount to help their offer look more serious to the sellers.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
3,125,842
There is no magic number. The higher the amount, the more serious the offer.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
851,242
1% of the proposed sale price is our local practice... It's too little and too easy to get back if the buyer flakes out. We don't have a due diligence fee that some have referenced in their answers.
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Michael Jacobs
Pasadena, CA
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
2,670,013
Here in Silicon Valley, we most commonly use 3% - as that's the "general maximum amount" allowed as damages if the deal goes south after contingencies are removed.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
1,153,794
A magic number, no, although I'll always ask for 20%. That being said the range has been between $1 up to seven figures and would you believe the dollar was the more diffiucult deposit to receive. It's a funny business!
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Michael Jacobs
Pasadena, CA
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
1,311,397
3% of the purchase price due to legal wording in our contacts that restricts the amount of forfeit to be expected regarding the earnest money in a default situation if the paragraph - Liquidated Damages - has been agreed to among the parties.
3% of the average sale in the San Francisco Bay Area is a significant chunk of change.
Also, in California, there is not a separate "due diligence" fee. The EMD does double duty.
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Michael Jacobs
Pasadena, CA
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
1,543,823
I average $10,000 flat above $500K # or 1-3% pending the price point and competition. It varies, but I use % less these days than I used to.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
378,517
it depends. Cash offers usually get more, finance around 1%, but it's always a case by case basis
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Michael Jacobs
Pasadena, CA
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
716,049
I think it's a factor of variables, such as price of the property, evaluation and % leverage of the buyer, market conditions, competitiveness, and other risk factors.
I'd say I counter about 40% of offers with higher EM. Tie-down the buyer closer to the fire, eliminate the weak, the uncertain, the riskies and the barely able to buy.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
1,239,901
3% RMD. The ones that were $250 buyers were not serious.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
1,502,998
The standard in my area has always been 3% for EMD. Anything less and it usually gets countered, anything more gets noticed!
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
711,852
I our market it is typically 1%. But the more earnest money, typically the stronger the offer.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
3,345,091
In my area, it is 3% of the purchase price. That number is not magic. It came about because it ties to liquidated damages which if both parties agree to, caps at 3%.
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
2,390,620
The only time I've asked is when they don't offer any Paul S. Henderson, REALTOR®, CRS and then I ask for 10%.
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Michael Jacobs
Pasadena, CA
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
1,725,996
No more than 3%, but we leave it up to the buyer to decide, then work from that point
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
989,652
I usually ask for 1% or minimum $1k
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Michael Jacobs
Pasadena, CA
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Bob "RealMan" Timm
Minot, ND
337,854
In Manhattan, it's Zero for an accepted offer with the expectation that both parties are exchanging attorney info for contract creation and due diligence within 24 hours (approx). Once the contracts are finalized and the buyer's attorney has reviewed all due diligence materials, then a 10% deposit at contract signing is the norm,
5,868,554
Around Denver, we usually see 1% of the purchase price, and I round up.
4,936,705
617,935
Paul,
It is VERY rare with our Colorado contract that the seller would ever get the earnest money. With 5 military installations in our area we have a high percentage of VA buyers. We also have a lot of inbound relo buyers who may not have closed yet on the home their moving from. So unless there is a good reason to the contrary I suggest sellers keep earnest money on the low side of 1% or less.