Once a purchase price has been established on a house sale, the next question becomes, “How much of a deposit should I give?”  Individual real estate agents and brokers in the Columbus, Ohio area may each have a different answer, but follow the same general guidelines.

The point of leaving a deposit with an offer to purchase a property is to let the sellers know you are serious or “earnest” about your offer.  That is why it is referred to as “earnest money.”  If a potential buyer did not leave any money with an offer they would not have any risk involved.  Money offered with the offer to purchase tells the sellers the buyer is serious about the offer.  There is risk involved for both parties.  In the Central Ohio area it is common for buyers to leave a deposit of between one and five percent of the purchase price.  It is my opinion that,under certain conditions, a larger deposit is wise.  For example, if the purchase offer is weak, or if there are several offers competing against each other, a larger deposit may sway the sellers towards the buyer’s offer.  However, normally, the lower deposit is sufficient.

There are some risks when giving a deposit with a purchase offer.  However, these risks have been minimized through strict regulations by the state of Ohio. Although the deposit “belongs” to the seller, it is held by either the real estate company or an escrow company until closing.  If the deal falls through it is easier to get the deposit back to the correct party.  In some cases that would be the buyer and in other cases it would be the seller. In order to protect your interest it is best to use a professional real estate agent or broker in the Columbus and Central Ohio area.  There is a lot of free information available to you about buying, selling or investing in Columbus and Central Ohio real estate. For complete information about the local real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to “Everything Real Estate in the Buckeye State” at www.scarletnrayhomes.com . Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer them. Call me on my cell at 614-668-4400 or email me at jandrews@columbus.rr.com .
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