Home Buying in Canarsie>Question Details

Joseph, Home Buyer in Brooklyn, NY

how much should i put down on signing of contract?

Asked by Joseph, Brooklyn, NY Wed Feb 17, 2010

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The standard in New York has always been 10%. However, there are times that a lower amount down can be negotiated. On higher priced homes it is not uncommon to only give 5%. Now that 3.5% down FHA loans are becoming more common, I have seen contracts with that amount down. It depends on your deal. If you are putting down 20% in total, the seller's attorney may very well put 10% in the contract. If you have a reason to want less than that, discuss it with your attorney beforehand, so that they know what they are dealing with.
2 votes Thank Flag Link Wed Feb 17, 2010
Hi, After I signed the buying contract in New York, the seller's agen told me to pay him commission after closing, he said he will not get paid much from seller. Is it legal? What should I do?
1 vote Thank Flag Link Sat Aug 24, 2013
Hello, when you are thinking of a down payment it depends on the type of property you're buying. For instance, a most co-ops in Brooklyn require a 10% down payment on contract, when buying a home you may only have to put down 3.5% percent if it qualifies under an F.H.A loan, if a home is not F.H.A approved then you may have to put down 10% or more; if buying a commercial property usually a 25% down payment is required.

if you have the minimum down payment for any of these type of properties then you are always welcome to put down more money. I hope this answer helped you.

Rhonda Holt
Licensed Sales Agent
Weichert Realtors, H.P Greenfield
cell: 646-725-5941
Email: HelpMeRhonda1919@yahoo.com
Web Reference: http://www.KandHhomes.com
1 vote Thank Flag Link Sat Feb 27, 2010
Hi Joseph,

As indicated below by Robin, 10% is customary in New York. Are you concerned about the amount that is required at contract signing? If yes, then you need to speak to your attorney about putting down a lesser amount initially (if it's possible) and come in with the balance at closing.

Best regards,

Bonnie Chernin & David Rogoff
Coldwell Banker Mid Plaza
Cell: 917-593-4068
E-mail: david@BestHomesInBrooklyn.com
1 vote Thank Flag Link Thu Feb 25, 2010
Hi Joseph. This is a snippet of a question. You give no indication if this is a Coop, Condo or Reidential building. You don't mention if you are working with a broker or if you've retained an Attorney. Hence, all answers themselves are arbitrary because there are not enough facts.

If it's residential and you're going FHA, your earnest money deposit might be no more than 3.5%. If it's a condo or coop and you're not going FHA you may be required to minimally put down 10% or more at contract signing.

Everything you need to know is readily available provided you have been working with professionals. Your question tells me you are going solo here and that is probably not in your best interest if you are serious to purchase. Lastly, if you've not at this point spoken with a mortgage consultant, you're just thinking about it and not yet serious.

Here's a last thought. The extended Federal tax credit will be expiring soon. If you are not in a fully executed contract of sale by April 30th and close on or before June 30th, you can kiss away the free money.
0 votes Thank Flag Link Mon Feb 22, 2010
Legally $1 is all that is needed for an earnest money deposit. Since the purpose of EMD is to hold the seller to sell why risk your money in an escrow trap and find it lost or tied up?
0 votes Thank Flag Link Mon Feb 22, 2010
if you put 10,00 dollars and decides to walk away on a bidding contract how decide you don't want that house no more what do you do ?
Flag Mon Jun 22, 2015
Joseph

Before you make any or your Best and final offer I believe as a Consumer you should read through these discussions.....

http://www.phoenixrealestateguy.com/can-i-get-proof-of-a-com…

http://www.trulia.com/voices/Home_Buying/Proof_of_competing_…

I suggest all Consumers read the above and consider it....Basing decisions based on the information supplied by Agents may not always be in the best interests of the Consumer..At least according to a good number of AGENTS.

Dunes
0 votes Thank Flag Link Mon Feb 22, 2010
They say the bigger amount the stronger the offer. However, I never like my clients putting down too much. I never want a lot of their money at risk so to speak. You just never know what can happen before the deal closes. Your agent should help you answer thsi question also as he know the market in your area.
0 votes Thank Flag Link Mon Feb 22, 2010
If you are up to the contract stage your attorney should be involved by now--what is he/she suggesting. It will depend on your loan, FHA or regaular, condo, co-op or house, etc.--your agent can best advise you as well.
0 votes Thank Flag Link Mon Feb 22, 2010
The downpayment amount is totally arbritary. The Real Estate AAgent is obligated to submit all offers and give an acceptance or rejection of the offer.The seller may make a counteroffer and raise your downpayment to assure him that you are sincere or may accept your offer outright. ......IT DOES'T HURT TO ASK........... Good Luck
0 votes Thank Flag Link Mon Feb 22, 2010
That depends on how much money you have and what the owner is willing to take to go to contract with you. The amount of down payment on contract signing is supposed to keep you from walking away from the deal if you find something better. If you've found a house, congratulations! If not and are not working with a buyer's agent, please feel free to contact me.

Ralph Windschuh
Certified Buyer Representative
Associate Broker
Century 21 Princeton Properties
631-467-0009
0 votes Thank Flag Link Thu Feb 18, 2010
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