The purpose of your earnest money deposit (also known as your “Escrow Amount“) is to show the seller how just how serious you are about buying his/her house… Your Escrow Deposit/ Earnest Money Amount (along with the other terms of your offer) are what will ultimately convince the seller to accept YOUR OFFER … take their property off the market … stop showing their house to other potential buyers… and stop entertaining additional offers… because they are selling the house to you.
Whether you put $1,000.00 or $100,000.00 down, the amount of your deposit will likely depend on several factors:
1) The purchase price of the property
2) Your personal finances and your available liquid assets
3) Your comfort level, as well as you commitment level
4) The statement YOU wish to make to the seller , to convince that seller to take your offer seriously
5) MOST IMPORTANT THOUGH: Your escrow amount should be an amount YOU would be willing to walk away from … SAY GOODBYE TO …. if another property were to come on the market after you were already solidly under contract on this one … a property or investment that would cause you to want to walk away from this one, cancel your contract, walk away, and buy the other one INSTEAD.
While the amount of your escrow amount is entirely up to you, as the buyer, the purpose of any earnest money deposit is to make a statement: “JUST HOW EARNEST ARE YOU?”
As you have questions with regard to buying or selling real estate, please ask. We are always available to you by email or phone. Buying, selling, building, or investing … We look forward to working with you and making your next purchase a really good one. Please don’t hesitate to contact us here anytime … or by email at restivo.v@ewm.com, or by phone at 305-793-1365 (cellular) The Restivo Team @ EWM Realtors.
