Earnest money deposits - whats the norm these days?

[Anonymous]

I'm having a hard time finding current info (read post real estate boom) on what is the norm for earnest money deposits when putting a contract in. I've seen 1-2% most often but curious to hear what those who have recently bought a house put in?

[Anonymous]

$100,000 on a $1,400,000 contract

[Anonymous]

We put 30K on a 625K contract last year.

[Anonymous]

We were looking in the $500-600k range and most people were expecting about 10-20k.

[Anonymous]

13:57. Just wanted to add that earnest money depends on many factors, including your sense of competing bids, need to show good faith, etc... Some deposits that are too high for the contract price can also put sellers and realtors off.

[Anonymous]

I put down $2k on a $393k house, but it was in an area that most of you won't even consider part of the DC area, and there weren't any other offers coming down the pike.

For a house in an in-demand area like Lyon Village, etc., it'd need to be higher, as you'll be competing with other buyers on price, contingencies (especially the "need to close on my house by Date X" clause), type of loan, etc.

[Anonymous]

13:59, why would a high deposit put sellers off??

[Anonymous]

OP here. WOW more than I thought. Although, the house we'll be buying is in the VA Beach area so not metro DC at all. We're putting a good chunk of change down as a down payment but did not plan to be putting more than 3k or so down. Its not a competitive market and the realtor told me most owners are just happy for an offer.

[Anonymous]

I just purchased a a house in the mid-500's and put down 5k. The Realtor said that was the minimum. We could have put down more, I just didn't feel the need.

[Anonymous]

3% is the norm....

[Anonymous]

We put $25K down on $900K, in a fairly in-demand North Arlington neighborhood.

[Anonymous]

We put down $5,000 on a $400,000 contract. Purchased a few years ago in a MD outer suburb.

[Anonymous]

Real estate agent here - it depends on the region. The 'norm' is 1-2% in Virginia, 3% in DC and 3-6% in Maryland. Not to say that you may not be able to get away with less, but if that's what your agent is suggesting, you'd be on target...

[Anonymous]

PP here - just read your 14:29 post OP. Go with what your agent suggests, if you can get away with less, esp if you're in an uncompetitive area, definitely do so.

[Anonymous]

Anonymous wrote:OP here. WOW more than I thought. Although, the house we'll be buying is in the VA Beach area so not metro DC at all. We're putting a good chunk of change down as a down payment but did not plan to be putting more than 3k or so down. Its not a competitive market and the realtor told me most owners are just happy for an offer.

Your earnest money can be used as down payment money.