Hi, the custom in our market (the Illinois side of the St. Louis metropolitan area) is much lower, often $500 or $1,000...and these days I am starting to see offers come in with $100 earnest money on lower priced homes. Representing the seller, we usually counter and ask for more than that -- after all, the seller is agreeing to take his/her house off the market. That said, 10 percent seems very high. Ask your agent if they can find out what the average is in your area and see if they can negotiate it down to that, using the stats to make your case. Best of luck!

Who's asking for the January closing? If you creating a contingency on sale, I be open to paying more in earnest money as a gesture of good faith so the seller has a little more peace of mind.

This is always a negotiating point and if your financing and credit look strong, I wouldn't let it stand in the way of closing the deal. Perhaps you could offer them to keep it on the market with a right of first refusal?

I have written contracts with as little as $500 and as much as $5000. Depending on your situation and how much you are financing, the good faith deposit will vary. For a buyer that is financing %100, there will typically be a very small deposit. If you are puting %20 down, then you GFD would be higher. Your agent will advise you on what is appropriate for you. Regardless of what you write in your first offer, a seller may counter with asking for more deposit. Tath's all part of the negotiating process.
If you have not settled on an agent to assist you with this process, I would be happy to help.
(860) 736-1002
danross@c21-accessamerica.com

WOW 10% sounds high, have your buyers agent negotiate try for 1% for the sales price. Not closing till January is long time have a home in escrow. unconfirmed of the reasons why. If you dont close end of January they can keep your 1% however 10% $33,800 sitting there... alot on the table.
http://www.lynn911.com http://www.homes-for-sale-dallas.com

The reason that the seller feels strongly about having 10% down for escrow is that they want to be assured that you intend to close before they essentially take their home off the market by the requirement that they show the home as "contingent" or "pending" rather than "active." You are very unlikely to make much on your short term investment anyway. Perhaps you and the seller could compromise with a 7 or 8% escrow good faith deposit? Good luck with your purchase. Focus on your new home.