Home Buying in 33904>Question Details

Carl, Home Buyer in San Francisco, CA

What is the standard percentage for earnest money in Florida real estate transactions?

Asked by Carl, San Francisco, CA Sat Aug 9, 2008

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Irina Karan’s answer
Hello Carl,

It's a great question!

While formally there is no standard percentage for the escrow money in FL, and everything is negotiable, we notice (and this depends on the area) certain practices.

For example, most REOs require 10% down.
Seller's market requires larger escrow money deposits than the buyer's market.
Larger escrow makes you look better in the eyes of the seller, but larger escrow amount also means that you have to be extra careful and do everything your contract requires you to do timely - so you don't loose your escrow money to the seller (when breaching the contract, f.e.)

Smaller size properties could be bound into contract with smaller escrow percentages.
Highly desirable properties could go above 10% (bidding war zones).

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Fri Aug 2, 2013
The standard percentage of the purchase price for the escrow deposit is typically 1% or more... If there are more than one offers coming in on a property and the offers are similar in price and cash offers, of course, the higher the deposit, the better.
0 votes Thank Flag Link Fri Aug 2, 2013
We don't really have a standard right now. As an agent representing sellers, we like to see at least $2500. Depending on the situation this can vary. We see many homes with multiple offers, so a higher escrow deposit will show how serious you are about buying the home. I typically advise my buyer to leave $5000 or more. This shows that we are ready to buy the home.


On cash deals it is typical to escrow 10%.
0 votes Thank Flag Link Fri Aug 2, 2013
There is no standard, as with almost everything in real estate its up for negotiation. Here is Arizona I would say an average is 1% of the purchase price. Good luck!
0 votes Thank Flag Link Mon Jul 29, 2013
I would love to help you out, just contact me through my Trulia profile. You can simply click on my photo or call me. In this competitive market everything matters.
0 votes Thank Flag Link Mon Jul 29, 2013
not sure why more or less money makes any difference on how serious you are as a buyer?? if you are not serious, why would you put any earnest money down..? no money should exchange hands until you have a binding offer..the seller should be glad they have any offer and consider every offer serious... .. if i as a buyer make an offer and put up no earnest money, is the seller going to say "never mind" "im not interested in your offer"... what????? after all contingencies are met, than i would agree, but not on the initial offer...
0 votes Thank Flag Link Sun Jul 21, 2013
Carl,
What I have seen as an average standard percentage for ernest money is 1%. And Mott is correct, it does depend on the seller, so the higher the earnest monies offered, the more likely you are to be taken seriously.
Cathryn Blair-Bennett
First Capital lending
239-277-9244 Ext. 212
0 votes Thank Flag Link Mon Aug 11, 2008
There really is no standard. Generally the higher the earnest money deposit, the more serious the offer will be taken.
0 votes Thank Flag Link Sun Aug 10, 2008
In our area for a normal single family dwelling, 1000 seems to be the norm. You can add to that, but most people don't want to lose their 1000, so they will be serious about the deal, and that seems to be what the seller is looking for.
Web Reference: http://www.MykeTriebold.com
0 votes Thank Flag Link Sun Aug 10, 2008
Carl, good morning...

I've bought and sold many properties in Florida ... don't ever put down more than you could lose in a day.

$2/$3,000 should be just about all of it ...



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0 votes Thank Flag Link Sun Aug 10, 2008
Carl,

As Scott has said there is no standard amount for the initial or secondary earnest money deposit. The thing to remember is to present enough in your offer for the seller to consider you a serious buyer but not so much that it would put you in a bind should the transaction go in an unfavorable direction.

You can always increase your cash contribution after inspections are done and contingencies are done. From a buyer's stand point we suggest committing as little as possible.......from a seller's perspective, get as much cash on the table as possible.

Hope this helps.
Good luck,

The "Eckler Team"
0 votes Thank Flag Link Sun Aug 10, 2008
Carl,

There is no standard percentage for earnest money in Florida. A lot of it has to deal with the price of the property and the owner of the peoperty as to what you give for earnest money. I have been dealing with a lot of bank owned properties and then like to see 2-3% of the purchase price as earnest money so they know you are serious about the home. There are a lot of cash buyers so you can over come that by putting down a bigger earnest money check to show your genuine interest in the property, because most sellers will go with a cah offer before a standard offer with financing involved. If I can help you identify a home I can give you some suggestions on earnest money to put down on a particular home.

Thanks,

Scott Riddle
239-289-1849
0 votes Thank Flag Link Sun Aug 10, 2008
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