earnest money plus a deposit? - Posted by Angela

import · October 23, 2006, 4:41pm

Posted by angela on October 26, 2006 at 09:01:33:

Thanks! I followed your advice, and they accepted.

import · October 23, 2006, 4:41pm

Posted by Angela on October 23, 2006 at 16:41:48:

I am negotiating a contract on a home in New York State valued at 450k. The seller wants a small earnest payment, plus a downpayment deposit of about $45,000. Is that unusual to ask for two payments and to ask for that much up front? When I did this in Virginia years ago, a couple thousand dollars (less than one percent) was enough to secure the contract. Seems way to high for me. Is this customary in NYS?

import · October 25, 2006, 10:03am

Re: earnest money plus a deposit? - Posted by River City

Posted by River City on October 25, 2006 at 10:03:20:

A couple thousand dollars is not very much to keep a purchaser on the line for a $450k home. I would suggest offering the sellers around $10,000 earnest money deposit and have someone (a closing attorney) hold the funds in escrow for closing. I would not give the money to the seller as it could sprout wings.