The Deposit, part 2
So, the negotiations have taken place, you’re prepared with your sign of good faith. However, as things change… or not, how does this affect your deposit, or the need for it!
WHAT if my offer falls apart after I submit my deposit?
Under normal circumstances, your deposit is returned to you in full. This can take a few days and up to two weeks, for Brokerages to fill out all necessary paperwork. Keep in mind, the money must clear before they release the money back to you. One way to speed up this process is to supply a bank draft as your deposit. This is becoming more and more of a requirement, so, a good rule of thumb to follow.
WHY do I supply a deposit?
The amount is held as a sign of ‘good faith’ between both parties that the transaction will close based on the terms agreed upon. In this volatile and competitive market your deposit can also be seen as a measure of a qualified buyer. This has contributed to the growing trend of larger deposit requirements set by Sellers.
HOW much will my deposit be?
The amount required is proportionate to the price point of the home you are offering. For example, a home listed at $$00,000 is not going to have the same deposit as a home listed at $1.4M. As a ballpark, you can anticipate to supply a deposit approximately 5% of the price point you are looking in!
Did you miss The Deposit, Part 1… be sure to pop back to it so you have ALL the details!