How Much $ Down?

How much would you put down on a house that is $200,000. :-\ How much would you put after inspections?

How much do you have? These questions can probably be answered by a local agent. Typically you would put down $1000 with the offer and then after the inspection, you would put down some more with the purchase and sale agreement.

Say you have a 10% down payment. You put down $1k with the offer. With the P&S, you can either put down $19k so you’ve got the full 10% down or you can just put down $9k and then the other 10k at closing. Because you could lose this money if you don’t go through with the sale, some people like putting down less with the P&S plus you usually don’t get interest on the money between the P&S and closing. Kinda complicated with the taxes as the money is usually held in escrow by the seller’s realtor. So they either don’t get an interest bearing escrow account or they say they’ll donate all interest to a charity.

If there were multiple offers, a large payment with the P&S would make it a stronger offer, in a soft market you could even get away with putting down just $4k with the P&S. Agents like to see 5 or 6% because then that money in the escrow account can just be transferred into the regular account at closing so it’s kinda of a nice feeling to know that the commission is already in the bank, just waiting for it to be transferred at closing.

One thing we have done a few times when we were SURE we were able to buy the property & that has cinched our rather low ball cash offer was to put $1K down to open escrow, & after inspection we would put another $2K down & all of it ($3K) released to the seller immediately. This tool also allowed us to negotiate longer escrows we needed at the time.

Of course I would not do this if I wsn’t 99.98% sure the deal could go through on buyers part unless I had $3K I wanted throw away. ;D But the buyer knows you are serious & it ties up the prop. so no one else can grab it.

I was having this discussion with a partner. What if you wanted to flip the 200,000 property. What would you put down then?

You still want the owner to know you are interested. Perhaps you want to keep it and are just not sure as of yet what exit strategy you will use.

What would you put down then? And how much after the inspections?

Question. Isn’t the inspection done after the purchase agreement? If this is the case, you would put down whatever you felt comfortable with and make it refundable contengent on specifics in the inspection.

Also put a clause in there subject to inspection. Plus you can add you request the seller to pay for X amount of dollars if something needs to be fixed.
Also never hand the check over to the seller. If your going thru a realtor, they will place it in an escrow account. If your going FSBO, they get yourself a escrow agent (title company) to hold the funds that way if you back out and do it legally, you will get your money back
You can never count on the seller really refunding your deposit.

LIGHTBEING: That is exactly what I said. I put down what I want. Eventually, they will get it all if and when the deal goes through completely.

yrush2000:I put in a clause subject to inspection. Aren’t inspections required? I was talking to the FSBO’s attorney, and I was told I was not to inspect. If I did, I would only have 5 days although my contract said otherwise. I was also told they wouldn’t agree to my contingencies (one was contingent upon inspections and appraisals.) I was given a contract that released the owner of any costs if something was in need to be fixed. I didn’t agree.

The homeowner was traveling out of state regularly. (So, how could I sign for the five days, even 10, when I have no guarantee as to when the homeowner will be there.)


All buyers have the right to add any clauses. Many investors add a clause, subject to partners approval even if they do not have a real partner. Then they cancel and state my partner is GOD…I have actually spoken to investors doing this…
If the sellers attorney does not want to allow you to put in subject to inspection and appraisal then walk away. The seller is trying to control the sale. The buyer is the one that needs to be in control since its your earnest money being put down on the contract.
Plenty of other deals will come along…