A common question is about the earnest money, or binder, deposit. The go-to answer is that this is an up-front deposit, placed in escrow, from buyer to seller so the seller knows the buyer is serious about the contract.

The amount can be negotiated but there are some general rules-of-thumb. Generally a buyer can expect to put a deposit of $1000-1500 on a home priced under $200,000. After that it can go up to a percentage of the sales price.

Again, generally, when a seller accepts a buyer’s offer, and their deposit, they will take the property off the market. During this time the buyer will take care of inspections and such, and if there is something that scares the buyer away from closing on the home, the deposit could be kept by the seller (depending on many factors within the contract between buyer and seller).

Hopefully this answers most questions! But if you have more please ask! And if you’re in the market to buy or sell give us a call today—