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Newbie, Home Buyer in Bristol, VT

Why is there 2 deposits needed when buying a home in nj?

Asked by Newbie, Bristol, VT Tue May 31, 2011

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Hi Newbie

The first offer is as you know now a good faith offer, it can be any denomination, usually $500 to $1000 the second deposit is done after you have secured the property through the completion of the attorney review. The more money you put down the stronger you look, but beware the deposit money is held in a trust fund and can be non-refunded if for some reason you decide not to go through with the purchase. Some reasons to be able to get out are sever conditions of the property and not being able to obtain a mortgage. be careful of some short sale and bank owned homes, you really buy these homes in as is condition. SO BE CAREFUL
0 votes Thank Flag Link Thu Jun 2, 2011
Hi there Newbie, the first - often a $1,000 initial deposit, accompanies the offer and shows a level of seriousness to putting pen to paper. The seond generally comes about 2 weeks after acceptance. Taken together they are viewed as the earnest money - again showing seriousness. You could collapse those into one at time of the offer, but I'd rather see you put down the second after you clear attorney review and are firmly under contract.

Think of it as "skin in the game" - if you are unwilling to put that in, the seller will not take you that seriously. Also remember this - the seller will be taking their home off the market once your deal is accepted - it is hard to ask them to do that with just a $1,000 deposit.

Jeanne Feenick
Unwavering Commitment to Service
Web Reference:
0 votes Thank Flag Link Tue May 31, 2011

The first deposit is a show of good faith when submitting the offer and the second deposit makes for a stronger offer. Typically the more money a buyer puts down on a home, the stronger the offer and the buyer appears stronger as well. Remember by submitting an offer you are asking the seller to accept your offer and take their home off the market. The more money is a more appetizing offer.

Gina Chirico, Sales Associate
Lattimer Realty
973-715-1158 cell
973-575-6353 ext 17 office
0 votes Thank Flag Link Tue May 31, 2011
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