When you submit an offer on a home, you’ll likely include a good faith deposit with the agreement of sale. This deposit is typically in the form of a personal check and often ranges from $500-$2,000 for homes under $300,000. Pricier homes often require a bit more. There is a lot of variability (and flexibility!) in this amount, so be sure to consult your EveryHome agent.
Kristin’s newest listing at 126 Milbob Dr in Ivyland
Most home buyers provide two good faith deposits: one with the offer, and one approximately 15 days later. This second deposit is typically provided after inspections are completed. Additionally, this second deposit is usually larger than the first.
The check for the deposit is held by the seller’s real estate company in a non-interest bearing escrow account until the day of settlement. On the day of settlement, the total sum of your good faith deposits are subtracted from the amount you owe.
If you decide to not purchase the home after signing a contract and providing a deposit, you may or may not be eligible to receive your deposit back. This depends largely on the contingencies that you signed, including the home inspection, appraisal, and wood infestation (termite) report. If you choose to not purchase the home due to an issue with one of these elected contingencies, you’re likely to receive your deposit back. Be sure to ask your EveryHome agent for more information.