WHAT'S THE USUAL % OF PURCHASE PRICE ACCEPTABLE EARNEST MONEY FOR A CONDO PURCHASE IN ZIP 33154?

Asked by Ann Murtagh, 10016 Thu Oct 18, 2007

wHAT AMOUNT IS USUAL AS EARNEST MONEY FOR A CONDO PURCHASE IN MIAMI BEACH ?

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13
Michael Klahr, , Surfside, FL
Fri Dec 5, 2008
Our agency usually recommends 10% to be held in escrow. At the point that you provide the deposit, the final price has been agreed upon and the sales contract signed. The other contingincies prior to closing are financing, inspections, condo docs and some docs relating to mold, radon etc.

If you don't put up the 10%, the seller has little incentive to take the property off the market.

I always recommend that you use a lawyer to represent your interests.
1 vote
Jenny Gurevi…, Agent, Cooper City, FL
Fri Nov 21, 2014
It is usually 1% of the sale price. With cash offers , REOs - minimum 10K is normal. in most cases refundable if the deals falls apart. Good luck!
0 votes
Mott Marvin…, Agent, Sunny Isles Beach, FL
Mon Jul 14, 2014
The higher the initial earnest money, the more "serious" your offer becomes from a psychological standpoint. Usually a good faith deposit should be at least 1% of the offered price.

The earest money is almost always refundable if the offer is rejected!
Web Reference: http://www.BeachHouseSurfside.com
Web Reference:  http://About.Me/Mott
0 votes
Irina Karan, Agent, Aventura, FL
Fri Jan 4, 2013
Hello Ann,

Usually it is 10%. If you anticipate competition - then 20, 30, 40, 50% - as much as you can do to make you stand out, and make you look like a stronger buyer.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes
Naomi Preston, Agent, Miami, FL
Mon Apr 9, 2012
In my opinion, 10-20%


All the Best!

Naomi Preston
Web Reference:  http://www.naomipreston.com
0 votes
ivonnerealtor, Agent, Bal Harbour, FL
Sun Jul 24, 2011
Dear Ann,
It all depends on purchase price and down payment but 2k-5k presented with offer sounds average. This will be added to the down payment at closing. It's up to you of course. Good luck with your offer!
Ivonne
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Dec 6, 2008
Ann the standard percenttage for a earnest money deposit is 1% of the sales/offer price. In most cases $1000 is offered up front and the balance is paid upon satisfactory home inspection. It does depend on if the seller has any specific amount they want, if it is new construction or bank owned. your bets bet is to simply ask the listing agent what their requirement is. good luck with your purchase.
Web Reference:  http://www.ScottSellsNH.com
0 votes
James Vandeck, , Allegheny County, PA
Sat Dec 6, 2008
Listen to your agent....Here in :Pittsburgh I would say if sales price is over @300,000 give a check for $7,000 to $10,000. If over $ 400,000, maybe $13,000 to 15,000. It also depends upon the condition of the property and how much competition you expect from other buyers..

Jimmy V
0 votes
Trey Miller, , Tampa, FL
Fri Dec 5, 2008
If you are going to use the FAR 9 contract and not the FAR/BAR I have a suggestion. With your intial offer put in a minimum deposit, maybe 1% - 3%. Then you can make a more substantial deposit contingent on a satisfactory inspection report. Why? First, you have less money "at risk" before the inspection period is over. Secondly, it shows the seller that you are a serious buyer and once the inspection hurdle is cleared there usually aren't too many things that can go wrong to kill the deal. In any event make sure you are using an agent that is representing you.

Trey Miller
Prudential Tropical Realty
Web Reference:  http://www.TampaTrey.com
0 votes
Don Tepper, Agent, Burke, VA
Thu Dec 20, 2007
Just to amplify on the other responses--along the same lines as Jose--because a larger earnest money deposit shows a more serious interest and is more attractive to a seller, it can be very attractive when you're going in with a low (very low) offer.
0 votes
Mott Marvin…, Agent, Sunny Isles Beach, FL
Thu Dec 20, 2007
The higher the initial earnest money, the more "serious" your offer becomes from a psychological standpoint. Usually a good faith deposit should be at least 1% of the offered price.

The earest money is almost always refundable if the offer is rejected!
0 votes
Elizabeth Bu…, Agent, Englewood, FL
Sun Oct 21, 2007
In our Company we like to see 10% for a offer. This tells the seller you are serious.
0 votes
Paula Bean, , Orlando, FL
Thu Oct 18, 2007
There is no usual amount of earnest money regardless of whether it's a condo, house, etc. If you are making a really low offer, it's in your best interest to put up a high earnest money deposit. If you are not, then take the advice of what is typical in the market.

Sellers often have a set fee they want for deposits, so do agents - just to make sure you are serious.
Take the advice of your agent on this matter.
Web Reference:  http://www.HomeOrlando.com
0 votes
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