Re: Question on earnest money amount in CA
10-07-2012 11:09 AM
That high deposit requirement strategy is the sort of thing that you employ when you expect to be flooded with offers in an overheated market, and you want to winnow out the weaker buyers. The accepted standard for earnest money requirements in a normal market tends to hover around 1%, give or take. This clown is demanding 3%, which is excessive IMO.
Given that the market isn't remotely overheated, it sounds to me like the guy either doesn't really want to sell the property (deep down), so he's sabotaging the deal or he's operating in la-la land and thinks he's sitting on Windsor Castle. I'm amazed that his realtor didn't flip out over him mandating that deposit in this market.
I wouldn't imagine that you'll run into other sellers in the area wanting that much down. It's a self-defeating strategy for someone who ostensibly wants to work a deal and get the thing sold.
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