Earnest money depoit (New Castle: sale, real estate, attorney)

[citygirl3133]

Hello -

For those of you with real estate expertise.

What is typical earnest money deposit in New Castle County, DE?
Does the percentage vary within NCC?
Is that same percentage typical throughout state or only in NCC?

Google tells me 1-2%, potentially as high as 10% in certain areas.

Thanks for the advice!

-Beth

[susieb09]

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[udelslayer]

Since it is to entice your seller to accept and go to contract, then $2-5k would be suitable. It shows what you're willing to lose. I didn't think its a percentage of the price, but a low offering under 1k isnt enough for most sellers. Its not like you dont get it back at closing. If they have to relist the house because the deal falls through, then it can cause complications for the sellers. I had a range of 500 to 5000 on a house I sold, but I went with the people who were offering the most for the house (above asking, but the earnest was under 3k) in the end because the market was hot and easy to relist. It wasnt here, but for perspective, I listed on a Friday, had 10 showings by Sunday and 4 healthy offers on Monday. Your agent should be able to advise on the conditions and what is a healthy offer. Make them work for it.

[citygirl3133]

Thanks for your feedback, udel. This is helpful!

[rdlr]

In Delaware, real estate contracts of sale cross my desk every day. Amount put down with the contract of sale could range between $500 and up. For high end properties, It's typical to put down a small deposit on the date of the initial contract and follow it up with an additional deposit on a date agreeable to both parties. With proposed new constructions, I've seen initial deposits of $5,000 and up, with many times an additional deposit as construction progresses. Be sure there is an Escape Clause in the contract of sale saying that if your financing does not go through, your deposit is refunded. With V.A. financing that is known as an "Amendatory Clause". If you do not use Realtor services, be sure to have an attorney draw up your contract of sale.