After many months of
searching, you have found your ideal house. You are a little older and a little
wiser now, so you want to give the impression that you are serious without
appearing to be too eager. What should you do? In the marketplace, "money
talks."
There is no absolute rule about how much
"good-faith" deposit you should put down--but it is a tool to make
your point with the seller. The typical $1,000 will hold many homes for you,
except in larger-home markets where it may be critical for you to show that you
are a serious and able buyer quickly. You don't want to make a deposit that is
too large in case there is a problem getting your money back, but if your offer
is substantially below the asking price, a larger deposit--$5,000 or
$10,000--might influence the seller.
If you make a low deposit with your offer, be
sure to provide for an increased deposit when the offer is accepted or upon
removal of the contingencies.
