When making an offer to purchase, the buyer usually states eg. “10% deposit”. Is this the deposit paid when the offer is made by the buyer to the seller to make it look like a “genuine offer”, or is it the deposit paid as the remainder of the purchase (purchase price – 90% homeloan)?
Confused….
When making an offer to purchase, the buyer usually states eg. “10% deposit”. Is this the deposit paid when the offer is made by the buyer to the seller to make it look like a “genuine offer”, or is it the deposit paid as the remainder of the purchase (purchase price – 90% homeloan)?Confused….
The deposit is paid when the offer to purchase is made. The amount of deposit is very variable from nothing up to 10%. The negotiation for the deposit is more a lock in for the Real Estate agent and the buyer.Quickly – in summary, yes it would make it look like a genuine offer and this is part of the reason.
The deposit will consist of part of the purchase price, you are correct in that assumption. Also be careful, as some RE agents will try and push you in to paying a higher deposit, mostly this is because they want thier money sooner. But maybe I am a sceptic!
Also – 10% is standard, but you really determine the deposit you pay. Depend how you want to work it.Regards,
Tim Wilson.
i bought the property for 83,000. I paid a $500 deposit when i made an offer. Now i am getting a loan of 74700 (90% of 83000).
So does that mean at settlement i wil pay the seller 8300 – deposit of 500 = $7800???
[]Yes Fullout
That’s correct
David U
Thanks guyS!
u guys are great~![]Fullout,
In our experience, a deposit means nothing until contracts are exchanged. We usually offer 5% on exchange and try to exchange with 48 hours of the offer being accepted.
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