What deposit should I accept?
- Thread starter Lilli
- Start date
I was under the impression that you could have any amount, but large amounts just make you seem more serious. That deposit just sits in a trust account at the REA for 90 days, after all. Your buyer will lose a lot of interest on that 10% for that long, they must really want your house 
Sounds like whoever made the offer is playing the Cash Flow game. Long (ish) settlement, minimal deposit so there cash sits in an offset account for 90 days, rather than in your agents T/A. I'd do the same myself.
There is no real hard and fast rule on how large.small a deposit needs to be. If you're happy with 5%, then go for it. If you want 10%, then push for that.
If they are going to back out of the deal down the track, how 5% or 10% won't really factor into it, I wouldn't think.
If you're happy with the offer and the conditions, then go for the win-win solution and take the 5% deposit. That's what I'd do, anyway.
So, is this an offer from the buyer who made the intial offer or has another come out of the woodwork?
The auction isn't going ahead, then?
Good luck!!!
There is no real hard and fast rule on how large.small a deposit needs to be. If you're happy with 5%, then go for it. If you want 10%, then push for that.
If they are going to back out of the deal down the track, how 5% or 10% won't really factor into it, I wouldn't think.
If you're happy with the offer and the conditions, then go for the win-win solution and take the 5% deposit. That's what I'd do, anyway.
So, is this an offer from the buyer who made the intial offer or has another come out of the woodwork?
The auction isn't going ahead, then?
Good luck!!!
5% is pretty normal. I would have no hesitation in accepting it. You have an unconditional contract which is fantastic if you are happy with the offer.
Hi Lilli,
No, a deposit dosn't have to be 10%. It can be whatever the buyer and seller both agree on.
Have you already had the offer (with the 10%) put in writing?
If they have orginally verbally offered you 10% and 90 days and you have verbally agreed to this, and now they want to change to 5% deposit, I would ask for something that you want before agreeing. Eg, are you happy with a 90 day settlement? Perhaps you would prefer a 60 day settlement? If so, you could agree to the 5% deposit if they agree to a 60 day settlement.
Try and negotiate conditions that suit you as well as the buyer.
It depends if you already have a written contract or not too.
Hope that helps.
Good luck
Lily
No, a deposit dosn't have to be 10%. It can be whatever the buyer and seller both agree on.
Have you already had the offer (with the 10%) put in writing?
If they have orginally verbally offered you 10% and 90 days and you have verbally agreed to this, and now they want to change to 5% deposit, I would ask for something that you want before agreeing. Eg, are you happy with a 90 day settlement? Perhaps you would prefer a 60 day settlement? If so, you could agree to the 5% deposit if they agree to a 60 day settlement.
Try and negotiate conditions that suit you as well as the buyer.
It depends if you already have a written contract or not too.
Hope that helps.
Good luck
Lily
The way I see it is you have the power in this negotiation. So If they have already made an unconditional offer of 10% and are now asking if 5% is OK, are there any conditions you would like adjusted in your favour, ie shorten/lengthen the settlement. You could just be nice, or push for something you want at the same time.
FWIW usually I offer $5K deposit(cashflow reasons as stated previously in this thread) regardless of price(all of my IP's were $250K or less) and get it accepted. Agents dont normally like deposits that are less than their commision either, so are usually reluctant to put offers forward that have very low deposits.
FWIW usually I offer $5K deposit(cashflow reasons as stated previously in this thread) regardless of price(all of my IP's were $250K or less) and get it accepted. Agents dont normally like deposits that are less than their commision either, so are usually reluctant to put offers forward that have very low deposits.
