Posted on: 15th Feb, 2006 04:13 pm
How much earnest moneyshould I ask for on a raw land piece selling for $85,000?
Hi Janetherren,
Welcome to Mortgagefit Forums.
Some realtors go for 3-5% of the purchase price. There are some factors on which it depends actually.
You may consider for a smaller earnest money if the price offered is close to the asking price, the buyer is already pre-approved and can meet the requirement of the seller for closing. Also if there is no unusual terms.
If somewhere it is felt that the buyer is weak, then it's better to ask for a larger earnest money deposit.
It has to be an amount which the buyer has to take seriously and can't just walk away and if he walks away should be enough to compensate the seller.
God bless you.
For MortgageFit,
Samantha
Welcome to Mortgagefit Forums.
Some realtors go for 3-5% of the purchase price. There are some factors on which it depends actually.
You may consider for a smaller earnest money if the price offered is close to the asking price, the buyer is already pre-approved and can meet the requirement of the seller for closing. Also if there is no unusual terms.
If somewhere it is felt that the buyer is weak, then it's better to ask for a larger earnest money deposit.
It has to be an amount which the buyer has to take seriously and can't just walk away and if he walks away should be enough to compensate the seller.
God bless you.
For MortgageFit,
Samantha
I think you should charge between $100 to $500 if it is not a very expensive property.
