Understanding The Purchase Offer Deposit, by Clyde Brown, Fremont Real Estate Expert

Once a purchase price has been established on a house sale, the next question becomes, "How much of a deposit should I give?" Individual real estate agents and brokers in the Fremont area may each have a different answer, but follow the same general guidelines.

The point of leaving a deposit with an offer to purchase a property is to let the sellers know you are serious or "earnest" about your offer. That is why it is referred to as "earnest money." If a potential buyer did not leave any money with an offer they would not have any risk involved. Money offered with the offer to purchase tells the sellers the buyer is serious about the offer. There is risk involved for both parties. In the Fremont area it is common for buyers to leave a deposit of between one and five percent of the purchase price. Professional real estate agent Clyde Brown, of Legacy Real Estate & Associates states under certain conditions a larger deposit is wise. For example, if the purchase offer is weak, or if there are several offers competing against each other, a larger deposit may sway the sellers towards the buyer's offer. However, normally, the lower deposit is sufficient.

There are some risks when giving a deposit with a purchase offer. However, states have minimized this risk with regulations and through the use of escrow companies. Although the deposit "belongs" to the seller, it is held by either the real estate company or an escrow company until closing. If the deal falls through it is easier to get the deposit back to the correct party. In some cases that would be the buyer and in other cases it would be the seller. One complication with using an escrow company is the parties involved need to be in agreement before the funds are released. In order to protect your interest it is best to use a professional real estate agent or broker in the Fremont area. If you would like more information about agents in the Fremont area go to http://www.ClydeBrownHomes.com or call Clyde Brown at 510-371-4237 or email at Clyde@ClydeBrownHomes.com.

There is a lot of free information available to you about buying, selling, investing, or relocating in the Fremont real estate market. If you are considering buying or selling property, planning to relocate, looking for East Bay Area homes for sale, or looking for any other information about real estate in the East Bay, or the surrounding areas, please visit the most complete website dedicated to everything real estate related www.ClydeBrownHomes.com.

If you or someone you know are in need of a competent and experienced Bay Area Realtor, or have real estate or mortgage related questions, please feel free to contact me I will be more than glad to answer your questions. Call me at 800-839-0665 or email me at Clyde@ClydeBrownHomes.com. For all your East Bay cities needs including Fremont, Newark, Union City, Hayward, Oakland, Santa Clara, Milpitas, Dublin, Livermore, Pleasanton, and San Ramon. Clyde Brown Legacy Real Estate & Associates.

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