Making Your Deposit
When you put down a deposit with your offer, you're saying, "I'm serious about buying your property." You're almost literally putting your money on the table, demonstrating-even before you make a down payment-that you're acting in good faith.
How much of a deposit is appropriate? There's no hard-and-fast rule, but 5-10% of the purchase price is the norm. Ask your real estate agent how much (or how little) you need to put down.
If you wish, your deposit can be deducted from your down payment upon closing. You will usually earn interest on a deposit of $5,000 or more, as long as the closing date is at least 30 days away. You must ask for the interest refund in advance by including it in your offer to purchase.
Be advised that if the seller accepts your offer and you later withdraw it, you stand to both forfeit your deposit and, depending on the circumstances, have legal action brought against you.
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