Henri Gourd 914-954-3897 henrigourd@bhhsne.com How much should I offer for a down payment? When submitting an offer to purchase a home you want to put yourself in the seller's shoes. How can you make your offer stand out among the others? One of the differentiating factors is the amount you are willing to put up when you present your offer. This "earnest money deposit" is a reflection of your seriousness in moving ahead. The larger the deposit, the more of your money is at risk. While this money goes into an escrow account and is ultimately applied towards the purchase price, it is also at risk if the buyer backs out for any reason not covered by a contingency noted in the offer. It is important therefore for the buyer to 1) make sure that contingencies (inspections, mortgage approval, etc.) are spelled out in the offer and 2) track deadlines. If the buyer is uncomfortable with unresolved inspection findings or is not approved for a mortgage, he can get his deposit back without penalty and the deal falls apart. If, however, the dates by which the buyer needs to notify the seller of mortgage or inspection issues passes without notifying the seller of the concerns, the contingency is considered to have been satisfied. At this point, the buyer loses his deposit if he backs out before closing. Determining the timing of the contingencies and the amount of escrow deposit are just part of the important conversation a buyer needs to have with his broker when making an offer. BERKSHIRE HATHAWAY HomeServices New England Properties Selling it all, from cottages to castles! Henri Gourd 914-954-3897 henrigourd@bhhsne.com How much should I offer for a down payment ? When submitting an offer to purchase a home you want to put yourself in the seller's shoes . How can you make your offer stand out among the others ? One of the differentiating factors is the amount you are willing to put up when you present your offer . This " earnest money deposit " is a reflection of your seriousness in moving ahead . The larger the deposit , the more of your money is at risk . While this money goes into an escrow account and is ultimately applied towards the purchase price , it is also at risk if the buyer backs out for any reason not covered by a contingency noted in the offer . It is important therefore for the buyer to 1 ) make sure that contingencies ( inspections , mortgage approval , etc. ) are spelled out in the offer and 2 ) track deadlines . If the buyer is uncomfortable with unresolved inspection findings or is not approved for a mortgage , he can get his deposit back without penalty and the deal falls apart . If , however , the dates by which the buyer needs to notify the seller of mortgage or inspection issues passes without notifying the seller of the concerns , the contingency is considered to have been satisfied . At this point , the buyer loses his deposit if he backs out before closing . Determining the timing of the contingencies and the amount of escrow deposit are just part of the important conversation a buyer needs to have with his broker when making an offer . BERKSHIRE HATHAWAY HomeServices New England Properties Selling it all , from cottages to castles !