After you have come up with an offer price, the next step is to determine how large a deposit you want to make with your offer. You want the "earnest money deposit" to be large enough to show the seller you are serious, but not so large you are placing significant funds at risk. One recommendation is to make sure your deposit is less than two percent of your offered price. The reason for this is that if your deposit is larger than that, the lender will pay particular attention to how you came up with the funds. You might have to provide a copy of a canceled check along with a bank statement showing you had the money to begin with. Normally, this is not a problem, but if you have a short escrow period or are barely coming up with your down payment, it could pose an inconvenience. Another reason to limit your deposit is "just in case." Although significant problems are the exception and not the rule, they do occur. "Just in case" there is a nasty or prolonged dispute between you and the seller, the less money you have tied up in a deposit, the fewer funds you have placed at risk. As with practically everything in real estate, there are exceptions to this rule, too. During a hot market there may be multiple offers on the property that interests you. A large deposit may impress a seller enough so they will accept your offer instead of someone else’s, even when your unknown competitor is offering the same price or slightly higher. Since large deposits do impress sellers, you may also find that by making a large deposit you can convince the seller to accept a lower offer. More money up front may save you money later.

    When you want to buy a home in Southern Maryland you need buyer representation. Someone to look out for your best interest. The bonus is that I offer my services to buyers free.
    Call me today before you go look at a home. If you are thinking about buying a new home, be sure to contact me before you walk into the model home. The agent there is working for the builder, not for you!
Plus, the builder has already figured in both of the real estate agents commissions into the price of the home. So the best thing to do is to get an agent, especially since you're going to pay for it anyway.

Home - Up - Your Best Investment - Buying an Automobile - Changing Jobs - The Closing Date
Earnest Money Deposit - Home Buyer Tips - Home Inspection - Market Condition
Moving Money Around - Your Offering Price - Property Condition - Seller Disclosures & Disclaimers
Settlement Service Providers - Income Tax Savings - Writing Offers

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    When you want to buy a home in Southern Maryland you need buyer representation. Someone to look out for your best interest. The bonus is that I offer my services to buyers free.
    Call me today before you go look at a home. If you are thinking about buying a new home, be sure to contact me before you walk into the model home. The agent there is working for the builder, not for you!
Plus, the builder has already figured in both of the real estate agents commissions into the price of the home. So the best thing to do is to get an agent, especially since you're going to pay for it anyway. Sign up to receive an informative newsletter from an exclusive buyers agent.