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Hi Debbie -- the buyer will initially decide and a seller will either accept, counter or reject the terms of the offer. I find the amount of the earnest money deposit is based on custom of the area. In my market, it is typically 3% although some buyers who want to stand out show a higher percentage. Given our prices, that can be quite significant.
This is just another example of the importance of "local" in real estate.
Walnut Creek, CA
Here in Florida, the buyer will make the offer with a sum in writing. The seller can then accept or counter offer for a different amount.
It is a negotiated item between buyer and seller.
Usually the buyer offers what they want to and the seller can ask for more if they feel it is needed.
That is between the buyer and seller and can be negotiated.
IMO the amount of Earnest money adds to determine how strong a contract is. A contract with a full price cash offer but only $1,000 earnest money is a bit scary but the same offer with $10,000 held by the listing brokers escrow is quite a bit more comfortable in my book.
Exactly the same person who dictates the final price.
The seller and the seller's agent will decide on an appropriate amount by signing an OTP. If you feel it is too small, counter a different amount.
Here in North Carolina, both due diligence fees and earnest money deposits are usually offered at presentation of OTP. The due diligence fee is much smaller because that is the money that the buyer does not get back if the deal goes South, but the combination of the two fees typically amount to about one percent of the purchase price.
Here in Arizona, the buyer is free to offer whatever they want. I try NOT to ever tell the client what to offer, however they ask me what is "normal" or standard I explain what the earnest money is, why we offer it, and in the end, the more the buyer offers the "stronger" the offer is often times perceived by the seller. Course, as most things, it is open to counter and negotation. Great question.
As each client has different monies available it would be the buyer as to what they have available and explained it could be higher.
I would say it's always the seller - they have to sign off on the offer which the EMD is a part of. With assistance from their agent of course.
The buyer unless otherwise stated..
Well - first the buyer's agent helps the buyer decide what is appropriate. Then, the listing agent will either accept it or counter. The norm in my city is 1-3% but I've seen deposits as low as $1,000 and as high as 5%.
In our market, we frequently see a minimum requirement. A larger deposit can sometimes give the buyer an advantage when multiple contract competition is anticipated.
It depends some listing have the earnest money amount in the private remarks.
I let the buyer decide.
In my area the seller sets an amount, but the buyer may, or may not, have that amount. So it could be any amount the buyer is willing to put up, and that the seller will accept.
I recently closed a transaction where we used a promissory note for earnest money. The seller took it, and we closed the deal with the earnest money due on the closing date and the seller concessions taking care of that amount of the earnest money. Slick deal on my part.
Here it is usually 3% on regular resales and REOs have different rules the buyer should follow. If buyer wants to deposit more, I'd never say No.