Alonzo, Other/Just Looking in Chicago, IL

What is the average deposit in the city of Chicago to an Owner upon the signing of a Sales Agreement?

Asked by Alonzo, Chicago, IL Fri Apr 4, 2008

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Alonzo,

I wouldn't disagree with any of the answers here, but I'd suggest that the "average" amount of earnest money deposited with an offer to purchase contract can vary widely depending on what areas/neighborhoods of the City of Chicago that you're dealing with.

The amount of earnest money also can vary greatly depending on the purchase price of the property. Typically the higher the purchase price the more money you'll have to deposit but not necessarily a higher percentage of the purchase price. So if you have a $100,000.00 purchase and only put down 1%, you'll only need to put down $1,000.00. If that purchase price is $750,000.00, then the same 1% becomes $7,500.00.

What's most important is what specific agreement you come to with your specific buyer or seller. Good luck.

--
Sincerely,

Christopher Thomas
Broker Associate, Keller Williams Realty Chicago Consulting Group
716 E. 47th St. Chicago, IL 60653
(773) 770-5947 (cell) (312) 577-0985 (fax)
cthomas@kw.com
http://www.myagentchris.kwrealty.com
0 votes Thank Flag Link Sun Oct 27, 2013
There's no average. Everything is negotiable.
The earnest money has to be something acceptable to the seller.
Always remember you're trying to make an attractive offer and every detail counts.
Not just the earnest money.
0 votes Thank Flag Link Fri Apr 25, 2008
can't imagine why anyone (other than a fabian fan) would give a thumbs down to elvis on this one. i see contract on properties all around the city and surrounding suburbs. some still go as high as 10% (!) of the purchase price. most still use 5%. a great many simply put down $5,000 or $10,000.

sorry for the repitiion in this answer, but if i were a buyer, i'd put down as little earnest money as i could possibly get away with.

were i a seller, i'd want to see 5%, but if the buyer appears to be serious and well qualified, and price offered were fair, i'd take less...
0 votes Thank Flag Link Sat Apr 5, 2008
North Shore here too...

Typically $1,000 with offer for initial earnest money deposit. And while it used to be 5% in "boom years"... If I'm acting as buyer's agent... I recommend as little as possible... sometimes 1% or 2%... of course, if I'm the listing agent, I'm looking for closer to 5%... but we're seeing deals gel for far less than 5%.
0 votes Thank Flag Link Fri Apr 4, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
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Alonzo,
In Chicago the average amount of earnest money is 5%. Of course there are variations, a home that I recently sold for $900,000 transacted with only $15,000 in earnest money while another home that I sold for $1.5MM had only $50,000 in earnest money. As the previous respondent indicated, an initial amount of $1,000 or so is expressed upon the execution of the contract and the remainder is agreed to be expressed at a set time often linked to attorney review/inspection period.

Best of luck with any searches or sales that may be on the horizon for you.
0 votes Thank Flag Link Fri Apr 4, 2008
Here on the North Shore, an offer is usually accompanied by a check in the $1,000-$5,000 range. The balance of the earnest money - usually at least 5% of the agreed on purchase price - is typically paid within 48 hours of satisfaction of attorney and inspection issues. However, these are issues that decided on between the parties - it's up to the individual buyer and seller to come to an agreement on terms.
0 votes Thank Flag Link Fri Apr 4, 2008
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