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It is customary for the purchaser to submit a deposit with an offer on real estate. This deposit is referred to as an Earnest Money Deposit. The earnest money deposit serves as evidence of the buyers intention to carry out the terms of the contract in good faith. The amount of the deposit is negotiable and a matter that is agreed upon by the parties of the transaction. As a rule, the deposit should be sufficient to:
Discourage the buyer from backing out of the deal
Compensate the seller for taking their property off the market
Cover an expenses that the seller might incur should the buyer default.
Speak with your Hawkins Group representative on what amount of deposit is appropriate for purchasing situation.
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