The deposit size is a crucial ingredient in the recipe for a successful real estate transaction. There are many reasons to give the deposit some very serious consideration. The deposit, in more and more cases, is quickly becoming one of the top three factors of a successful offer. Of course there is price, and there is closing date but right in that crucial mix is the deposit. The deposit says a lot about the offer and who is making the offer.
For many years in the Barrie area people have used a $1,000 deposit to hold a house any house whether it be priced at $150,000 or $400,000. Agents would advise their clients that that was enough to get the deal done. Well I am here to say times have changed and my minimum standard for my buyers and sellers is 1% of the purchase price. 1% is the minimum that should be offered or accepted. In the larger markets deposits can average around 10% of the offer price.
The deposit is a reflection of the buyer’s level of interest or their commitment to the offer. The deposit is going towards the purchase price at closing so why not impress the sellers with a healthy deposit? In many cases the amount of the deposit can make the seller feel more comfortable dealing with you and help the whole process to go more smoothly.
I just had a listing priced at $275,000. There was an interested buyer and since he was truly interested he offered a $10,000 deposit. The seller was really impressed by that and knew that the buyer meant business. The transaction went very smoothly.