There are some misconceptions about earnest deposits that are worth clearing up. As a Tulsa home buyer, an earnest deposit can be a powerful bargaining chip, especially in a multi-bid situation. Often home buyers are concerned about losing their earnest deposit should a sale fall through. While this is possible, the chances are greater a home buyer will retain the money put down, unless they simply change their mind without cause.
In the Tulsa real estate market, once an offer is made, there is a 10-day period to get an inspection completed. During this time, a buyer can also walk away from an offer without losing their earnest deposit; they need only provided a reason. What the reason could be is very broadly defined; adding is a good measure of security for home buyers.
So how can an earnest deposit be a good negotiation tool for home buyers? The greater your deposit, the more serious you are, or the more Earnest you are in acquiring a property. For a home seller, this is a valuable way to know if they are dealing with a buyer who not only wants the house, but is ready to buy it. Having significant earnest deposit can even help a lower offer trump a higher bid.
As a home buyer, when you put down an earnest deposit, the funds go towards your purchase of the home. Essentially, you are establishing a down payment before the closing to help secure your offer on a property. A good starting point for an earnest deposit is $1,000, but a greater amount will give Green Region home buyers a better advantage. If two buyers make an offer on the same house, the seller is more likely to go with the one with a greater earnest deposit; a $5,000 deposit shows more earnest than one for just $500, for example.
Earnest deposits can be a powerful negotiation tool for Tulsa home buyers. Whether you choose me to be your Realtor® or not, my goal is to help educate the community and my clients towards achieving their home dreams For real estate questions, contact The Baskin Real Estate Specialists of eXp Realty at 918-732-9732 or darrylbaskin.com