Q: How much should my earnest money deposit be?

A: There is no set rule or requirement, the amount of your earnest money deposit typically depends on several factors: what is customary, the buyers finances and what are the market conditions. 

Buying a home in Silver Spring, MDIn the Silver Spring, MD area a customary earnest money deposit is about 1%+ of the sales price. A low earnest money deposit can considerably weaken an offer since it doesn't show the seller that the buyer will have any skin in the game.

Just think about it, how serious will the seller think you are if you are making a $100 deposit on a $400,000 house? Yes, I almost had this happen once .. 

It's important to note that the amount of the deposit is written into the Maryland Residential Contract of Sale and only a copy of the check is submitted with the offer.

After contract ratification the check must be deposited into escrow within 7 business days. Silver Spring, MD home buyers will see their earnest deposit as a credit on the settlement sheet.

How much of an earnest money deposit you should make also depends on market conditions however. In a competitive market where buyers far outnumber sellers, a higher earnest money deposit can considerably strengthen your offer and give you a leg up over the competition.

In the Silver Spring, MD seller's market we are currently experiencing buyers got to put their best foot forward when making an offer - a higher than customary earnest money deposit can help you do just that.

Silver Spring, MD Home Buying Q&A: How much should my earnest money deposit be?

ANDREA BEDARD, M.A. ~ THOMPSON COMPANY, REALTORS ~ LIVING MARYLAND BLIPS

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Thompson Company, Realtors
15711 New Hampshire Ave Silver Spring, MD 20905
o: (301) 384-9177 c: (240)593-2860
andreabedard@mris.com
For Military Families Maryland Home Search

Andrea is a proud military spouse, mom of two beautiful little girls, hobby decorator and a Realtor® based in Silver Spring, MD. Andrea focuses on Montgomery County and Howard County Real Estate, she enjoys everything beautiful in life and always answers the phone with a smile.

 

 All photographs are my own and I'd like to keep it that way. All information is deemed reliable but not guaranteed.
 

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Andrea Bedard, M.A. ~ REALTOR® & Mil Spouse ~ Silver Spring, MD and beyond

Silver Spring, MD

More about me…

Thompson Company Realtors

Address: 15711 New Hampshire Ave, Silver Spring, MD, 20905

Office Phone: (301) 384-9177

Cell Phone: (240) 593-2860

Email Me

From Bethesda to Odenton - Montgomery & Howard County Real Estate blog

My blog is a mix of information about Maryland Real Estate, community spotlights, customer service discussions, industry news and trends, things to do & places to visit ... - sprinkled with a candid perspective of the life, times & tribulations of my life as a Realtor, mom and military spouse in the national capitol area

Living Maryland - blips from a Realtor, Mom and Military Spouse

Please visit mdhomes4mil.com - my blog for military families stationed at WRNMMC/NSA Bethesda and Fort Meade!

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Have a question about the Maryland Real Estate market?
Andrea Bedard, M.A. Thompson Co. Realtors
Call: 240-593-2860

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