I'm looking to put an offer in on a home in norristown, pa...What is the minimum money amount that shld accompany the offer?

Asked by Christopher J., 19703 Tue Sep 7, 2010

I put an offer on a property in Delaware and the amount was anything between 1-3% of the offer amount.

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7
Maggie Hawk, Agent, New Smyrna Beach, FL
Tue Sep 7, 2010
BEST ANSWER
Christopher,
There is no "standard" amount. I suggest different amounts, depending upon the type of sale it is.

If the property is a short sale, I would recommend no more than $500 for an earnest money deposit, since the money may be tied up for a long time, while you wait for an approval of the sale by the Seller's lender. For a foreclosure, perhaps $500-$1,000.

If the sale is a "normal" sale, then I usually suggest 5% of the amount offered. The reason for this is that a substantial deposit is a means of indicating the seriousness of your intent to the Seller.

Good luck with your purchase in Norristown. I lived in the area for 18 years, and have fond memories of it.

Warm regards,
Maggie Hawk, REALTOR
(386) 314-1149
Watson Realty Corp.
1 vote
Edmund Choi, Agent, Paoli, PA
Tue Sep 7, 2010
A valid offer should be submitted with consideration in the neighborhood of $500-1,000. A subsequent escrow deposit within +/- 10 days should also be made, per the agreement, to demonstrate buyer's willingness to move forward with the transaction. Good Hunting!
1 vote
Erica Ramus,…, Agent, Pottsville, PA
Tue Nov 9, 2010
THere is no rule of thumb or standard. The more you put down, the more serious you look to a seller (as that is your risk money).
0 votes
Amy Sullivan, Agent, Bryn Mawr, PA
Tue Nov 9, 2010
Hello Christopher,

This question certainly does not have a definite answer. The main thing to keep in mind is that whatever amount you decide to put into escrow with your offer will be applied to what is owed at settlement. However, remember that this amount will be unavailable to you until settlement therefore it must be a number that you are comfortable with. Some will advise you that a minimal amount is ok due to the fact that this is a buyer's market. I disagree with that and always advise my clients to make their good faith as strong as possible. There was a time when 10% was the customary number. Imagine that!

http://www.GreaterPhillyHomes.com
0 votes
Gene Juillet, , Norristown, PA
Tue Sep 7, 2010
If you are purchasing a home and writing up the initial offer with a Real Estate Agent, they will inform you on the amount to be attached with the offer...I generally have Buyers attach a $500.00 - $1,000.00 check made payable to the sellers agent. This will indicate your "Good Faith" is intended with the offer. Of course whatever the amount, it will be deducted from the agreed upon sales price, and most likely a 2nd deposit check will be required within a 2 week time-frame.
0 votes
Alexander Sh…, Agent, Huntingdon Valley, PA
Tue Sep 7, 2010
Hello Chris,

Generaly 3% sounds good. I always ask my client for at least 3%.
Best of Luck in your Transaction.

Alexander Shulzhenko

http://www.eRealltyFind.com
267 738 0886
realexs@gmail.com
Web Reference:  http://www.eRealltyFind.com
0 votes
Terrence Cha…, Home Owner, Allentown, PA
Tue Sep 7, 2010
Are you working with a real estate agent? What do they say? Within a few percent should be fine. Although, depending on the financing you are looking to get, the higher your down payment, then the more serious your offer will be taken.

Good luck! And if you need a Realtor to look after your interests, then please contact me.

Terrence Charest
0 votes
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