Determining how MUCH Earnest Money to put down when making an initial offer is VERY IMPORTANT!
The amount of Earnest Money you include with your offer is highly important. It sets the stage for negotiations and the strength of your offer. The amount you choose to put up as Earnest Money has both advantages and disadvantages, protections and exposure.
If you were working with the Seller's Agent (the agent who listed the home that you are offering to buy), they would likely try to get you to put down a very large sum of money. This might be because if you were to default on the contract, the Seller would be able to keep that large amount of Earnest Money they convinced you to put down. Without proper protections and contingencies in your offer, that could leave you without a home and with less money to make an offer on another property.
Buyers who have put up a large sum of Earnest Money often feel forced to go through with the purchase, even when it may no longer be in their best interest. If you choose to work with an Exclusive Buyers Agent at Homebuyer Reprsentation, you will never feel forced to purchase a home that is no longer in your best interests.
When calculating how much Earnest Money to put down on a property, we take the time to evaluate your situation, the current situation of the real estate market, and whatever information we have been able to obtain about the sellers and their agent that might be to your advantage. There could be times that a substantial Earnest Money Deposit would be in your best interests. A typical fair amount for an initial offer is about 1% of the price of the home. Depending on the situation, a smaller amount may be appropriate or advised. In Utah, Earnest Money protects the Buyer as well as the Seller. As agents on YOUR side, we will help you determine whether or not it could be to your benefit to offer a larger or smaller amount in your initial offer.
In order to protect you and your Earnest Money, we work together with you to craft an offer that makes your offer look strong to a seller, and which also includes terms that have advantages to you, the Buyer. As Exclusive Buyer's Agents, we do everything possible to protect you and your money.
Remember Exclusive Buyer's Agents do not list homes and will not ask you to limit your level of representation. They will be 100% on your side during the transaction, representing YOU, negotiating on YOUR behalf and protecting YOUR interests.
- Do you have excellent credit?
- Do you plan to purchase a $400,000+ home within 60 days?
- Do you have a good down payment, or are you paying cash for your next home?
- Do you want an agent on YOUR side throughout your transaction?
- Do you have questions about buying a home in the Salt Lake area?
Don't leave things to chance. Get YOUR OWN agent!
Call or text us at (801) 999-8889 today for a free consultation.
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Salt Lake City, UT - Exclusive Buyer's Agents (EBAs)
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