When u put a property under contract do u have to give a deposit to the seller? If u do how much?
i would recommend you never give money to the seller. Instead, put the deposit on escrow with tittle company. The deposit could be $1, $10, $100, $500… good luck!
Yes. That should make the contract binding. It could be anything between $10-$100. You’d do well to keep it the least possible amount you can put as deposit. The reason being, just in case the contract gets canceled and the amount gets forfeited or if the seller simply will not give it back, you don’t lose that much.
Hope this helps. :smile
i always tell the seller and have it written in my contract deposit due upon the release of the inspection contingency. i explain to them i look at and contract so many house a week that i would have to much money floating around if i gave a deposit upfront all the time.
Just like the previous posters mentioned, I suggest keeping your deposit to a minimum and placing it in escrow versus in the hands of the seller. Additionally, you may even have a stipulation in your contract that the EMD check isn’t to be cashed but only the check itself is held in escrow and to be cashed at the time of closing. I personally went with this special verbiage after losing $100 once, to sellers that wouldn’t cooperate.
I’ve lost several $2 and $10 deposits to lock up a property for 30-60 days. Its not something I worry about. It’s funny a few homeowners actually mailed me the deposit back, and I didnt ask for it. I had one seller tell me he wanted $2,500 earnest deposit for his 10K fixer. I didnt jump on that one.
The $5-$10 dollar binder deposit is the last thing you should be worrying about. If you have it give it up to them. It is a minor loss, that’s why I love this business. You don’t have high risk, but you have potiental high gain. :biggrin
To make a contract legally binding all you necessary have to put up is $1 in earnest money. If I’m feeling generous I may put up $10 or $20. Make sure that the original agreement allows you to assign the property.
To your success! :smile