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 Salt Lake City Utah 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 Salt Lake City Utah area it is common for buyers to leave a deposit of between one and five percent of the purchase price.  Professional real   estate agent Kathy Opolski, of RE/MAX 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 Salt Lake City Utah area.  If you would like more information about agents in the Salt Lake City Utah area go to www.BuySaltLakeHomes.com or call Kathy Opolski at 801-518-4599 or email at kathyo@kathyohomes.com.

There is a lot of free information available to you about buying, selling or investing in Salt Lake City Utah real estate. For complete information about the Salt Lake City Utah real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Salt Lake City Utah real estate at www.BuySaltLakeHomes.com. Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 801-518-4599 or email me at kathyo@kathyohomes.com.

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