Let’s talk about deposits! A lot of clients have many questions regarding this topic so we figured we would chat about it and try and break it down for you.
A deposit is the money you submit during the offer process to secure a property you wish to purchase. Think of it as a gesture of good faith to the seller. A deposit shows the seller you’re serious and committed to buying their property. It demonstrates that you have the financial means to make the purchase and you’re comfortable taking on some level of risk until the deal closes.
There is no standard amount for a deposit, so I can’t say how much it will cost you. The average deposit is around $5,000 depending on the purchase price of the property. The more expensive, the higher the deposit.
Deposits can be due when an offer is made, once an offer is accepted, or another agreed-upon time. This should all be captured in the written terms of your offer and the eventual agreement.
Want to know more about deposits and any other question that come up bring the buying and selling process? Check out our First Time Home Buyers & Sellers of Simcoe County group on Facebook. This is forum where we share tips, news and chat about some of the most common questions that arise when buying or selling a home!