Normally a $1000 GFD is all you need. If you do decide to give the $4000 GFD, make sure you have your attorney keep it in a trust acoount they set up for you. Under no circumstances do you let the seller's or their agent or attorney demand that they hold the money. If something goes wrong during the transaction, you might have a difficult time getting it back.
Paul Howard, Broker
NJHomeBuyer.com Realty 08002
http://www.naeba.org - National Association of Exclusive Buyer Agents
In North Jersey , there is no set amount for a good faith deposit. It usually accompanies the contract of offer.
Your offer has been accepted, and your lawyer will start attorney review, from what you have described. The custom here is that 10 days after attorney review is over the balance of 10% is dues from the buyer. (the amount is minus what they have already put down for a deposit with the offer.) It is money you are committing after attorney review is over. You are just giving a little more up front.
Your $4000. goes towards your down payment, yes.
I have had all different amounts used as a deposit with a contract of offer. It is a way of showing the seller your sincerity.
According to your contract, you don't need to have the other 16,000 available until the closing. SO, the seller wanted to see a little more of a commitment from you (n terms of money that you have commited to the deal)
that just the 800.00.
It doesn't seem unreasonable since you don't pay any other money until the closing, according to how you have described your contract.
Good luck with you new home.
What you may want to consider is that the deposit MUST go into an escrow account and can't come out except on closing, at an agreement by the two parties or by court order. The more you have up, the less you will have to move on with, should the deal fall apart and you find that you and the seller disagree about how the funds should be disbursed.
Lots of luck with your new home. I hope it works out for you.
Yes, the money will be used as part of your down payment.
After attorney review the house will be listed in the Multiple Listive Service as 'under contract', effectively taking it off the market. So the sellers want to be sure that you're serious.
Good Luck with your purchase!
Keller Williams Atlantic Shore
There is no industry standard and these numbers are always dependent upon what a buyer can afford; however, the seller is looking to see that you are serious and will not walk away from the deal. That being said, the feeling is that most people will be less likely to walk away from a larger deposit than a smaller one.
All deposit money is deducted from your purchase price and is fully refundable by the terms of your contract. Your attorney will advise and protect your interests.