How much earnest money should I put down with my offer?
In today’s Phoenix Real Estate FAQ Kristin LaVanway and Dean Ouellette discuss how much money to put down as earnest money when you submit an offer. A general rule of thumb with earnest money is about 1% of the offer price. The exception is on a foreclosure where the earnest money is usually expected to be $1,000. Another thing to consider when making an offer is how many offers does this house have on it, if it is in a multiple offer situation and you have an offer that is probably very similar to other offers earnest money can be a strong weapon to make your offer stand out. I have had investors put down the full purchase price as earnest money because they really wanted the house. Would love to hear your thoughts, you can leave a comment or e-mail me Dean Ouellette.
