Real Estate: earnest money when buying a house (how much, professionals)

[yakimono]

If you've bought a house recently, how much earnest money did you put down?

Anyone know what the average amount is in the metro area? Does it vary based on how (in)expensive the house is?

Bonus points for posts by professionals in the real estate biz who can speak to the numerous deals they witness!

[BryaninMSP]

Most of my clients opt for $1,000 or $2,000, sometimes up to 1 percent of the purchase price. In Minnesota, earnest money is optional. I'd say any more than 1 percent tends to be overkill, but can be worth it if you're in a multiple-offer situation and want to show the sellers you're the most serious contender (though ultimately most will pick the highest offer, so long as the terms aren't concerning).

[StPaulGal]

Originally Posted by BryaninMSP

Most of my clients opt for $1,000 or $2,000, sometimes up to 1 percent of the purchase price. In Minnesota, earnest money is optional. I'd say any more than 1 percent tends to be overkill, but can be worth it if you're in a multiple-offer situation and want to show the sellers you're the most serious contender (though ultimately most will pick the highest offer, so long as the terms aren't concerning).

That's pretty much what I was told 3 years ago when I bought my (first) house. My agent said that $1,000 was the typical amount, but he suggested that we put in 10K to demonstrate that we were serious and ready to go since we were pushing for a quick close.

[WoodburyWoody]

Bryan's view is in sync with what our buying agent recommended (and what we did) with the home we bought some 15 years ago. I recall putting $5k into earnest (on a $260k offer/acceptance, as there were multiple buyers making offers - I imagine, though, the seller went the route of best offer without weird obstacles or hoops attached to the offer (I mean, I would).

[whatever]

In it for "more data is better"; Selling our house for 450-ish, buyer dropped 5k in earnest.

[Shoshanarose]

So strange.
I just made an offer on a $300,000 house, and my realtor is telling me I should put in 10% (!) in earnest money - that's $30,000!

[BryaninMSP]

Originally Posted by Shoshanarose

So strange.
I just made an offer on a $300,000 house, and my realtor is telling me I should put in 10% (!) in earnest money - that's $30,000!

That sounds excessive, but then your agent knows more about your particular deal than I do. Is it a cash offer? Multiple offers/short time on market? Ask your agent for their reasoning behind offering such a large amount. I'm not saying that it's incorrect — but your agent should definitely let you know why they're suggesting that amount.

[TimtheGuy]

Originally Posted by Shoshanarose

So strange.
I just made an offer on a $300,000 house, and my realtor is telling me I should put in 10% (!) in earnest money - that's $30,000!

very rare to see that much EM in our area on an existing home.