lookingtobuy, Home Buyer in Arlington, VA

What's the right amount to put as a deposit in the Boston Market?

Asked by lookingtobuy, Arlington, VA Tue Apr 23, 2013

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9
CH Naamad, Agent, Boston, MA
Wed Apr 24, 2013
The right amount to put down depends on you, what you are buying and your credit worthiness.
Usually, most of my buyers are putting 20% down.
Best of luck,
0 votes
Gary Dwyer, Agent, Boston, MA
Wed Apr 24, 2013
The most simple answer is "it all depends". As a buyer agent, I want my buyer to be able to put the least amount of money into the escrow account until closing - whether they are paying cash or getting a loan.

In many cases, $1000.00 to bind the offer and then another amount to equal 5% of the purchase price at the signing of the Purchase and Sale agreemtn (P&S) is the expectation. However, if you are purchasing an FHA or Mass Housing loan and putting down a total of 3.5% as your downpayment, I advocate for $1000.00 to bind the deposit and then remaining amount to bring the total in escrow prior to closing to the 3.5% level at the signing of the P&S.

If you are buying new construction, the deposit for the reservation is typically $2500.00 and at the signing of the purchase contract the additional deposit is generally expected to equal 10% of the purchase price (including upgrades).
0 votes
Louis Wolfs…, Agent, Needham, MA
Wed Apr 24, 2013
The higher the deposit the stronger your offer will look to the seller. The higher the deposit the greater your exposure.

Typically with the offer it is 500 to 5000 depending on the purchase price and the market you are in.

With the purchase and sales agreement it is typically 5% to 10% of the purchase price.

FHA as stated below will be less.
0 votes
Daniel Martin, , Boston, MA
Tue Apr 23, 2013
Usually 3 to 5 % with purchase and sale
0 votes
John Dean, Agent, Somerville, MA
Tue Apr 23, 2013
Looking ...

The norm is $1,000 to bind the offer and 5% in total at the time of purchase and sale. If you are an FHA buyer I have seen as little as 3.5% down at the time of purchase and sale. Which area of the Boston market are you searching in ?
0 votes
Danielle O'B…, Agent, West Roxbury, MA
Tue Apr 23, 2013
I'd say 3-5% is common for the price points and neighborhoods I concentrate in. I would only add that it could depend on the program you are using and status of the current market. Previously, if a client was using Mass Housing or FHA would sometimes advise that the deposit be the 3 or 3.5% downpayment associated with using these programs instead of 5%. I've seen much less than even these percentages for those using VA loans of 100% financing. However, the market has been so competitive as of late that I am advising these same buyers to put as much down as possible to secure the deal and compete against the 5-10% 'ers, even if they will have this money returned at closing.
0 votes
Ivy A. Turner, Agent, Boston, MA
Tue Apr 23, 2013
In Boston it is customary to put $1,000. with the offer and either 5% or 10% (minus the $1,000.) at the Purchase & Sale (P&S) signing. In competitive situations 10% is common in the most desirable neighborhoods. Sometimes buyers offer more ($2,500. or $5,000.) with their initial offer to help make their offer stand out from what may be a crowd.

Some years back 10% was customary in downtown Boston. Many Sellers remember this and expect to get a 10% deposit since this is what they had to pay when they bought. In the suburbs 5% is customary.
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George Goulas, Agent, Charlton, MA
Tue Apr 23, 2013
5% total (usually $1,000 with the offer and the balance of the 5% at the signing of the Purchase & Sale Agreement).
0 votes
Jim Driscoll, , Lynnfield, MA
Tue Apr 23, 2013
5% is customary but everything is a negotiation
0 votes
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