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After
you
have
come
up
with
an
offer
price,
the
next
step
is
to
determine
how
large
a
deposit
you
want
to
make
with
your
offer.
You
want
the
"earnest
money
deposit"
to
be
large
enough
to
show
the
seller
you
are
serious,
but
not
so
large
you
are
placing
significant
funds
at
risk.
One
recommendation
is
to
make
sure
your
deposit
is
less
than
two
to
three
percent
(depending
on
your
location) of
your
offered
price.
The
reason
for
this
is
that
if
your
deposit
is
larger
than
that,
the
lender
will
pay
particular
attention
to
how
you
came
up
with
the
funds.
You
might
have
to
provide
a
copy
of
a
canceled
check
along
with
a
bank
statement
showing
you
had
the
money
to
begin
with.
Normally,
this
is
not
a
problem,
but
if
you
have
a
short
escrow
period
or
are
barely
coming
up
with
your
down
payment,
it
could
pose
an
inconvenience.
Another
reason
to
limit
your
deposit
is
"just
in
case."
Although
significant
problems
are
the
exception
and
not
the
rule,
they
do
occur.
"Just
in
case"
there
is
a
nasty
or
prolonged
dispute
between
you
and
the
seller,
the
less
money
you
have
tied
up
in
a
deposit,
the
fewer
funds
you
have
placed
at
risk.
As
with
practically
everything
in
real
estate,
there
are
exceptions
to
this
rule,
too.
During
a
hot
market
there
may
be
multiple
offers
on
the
property
that
interests
you.
A
large
deposit
may
impress
a
seller
enough
so
they
will
accept
your
offer
instead
of
someone
else’s,
even
when
your
unknown
competitor
is
offering
the
same
price
or
slightly
higher.
Since
large
deposits
do
impress
sellers,
you
may
also
find
that
by
making
a
large
deposit
you
can
convince
the
seller
to
accept
a
lower
offer.
More
money
up
front
may
save
you
money
later.
There
are
also
times
when
closing
can
be
delayed
by
weeks,
through
no
fault
of
your
own.
Have
back-up
plans
prepared
for
such
a
contingency. |
