PURCHASE PRICE AND DEPOSIT TERMS

The second crucial aspect of the Offer to Purchase is the purchase price and deposit. A Buyer of a house or condominium will want the deposit terms to be as low as possible while the Seller will want them to be as high as possible to make it less attractive for the Buyer to walk away. A typical deposit with the Offer to Purchase is normally between $500.00 to $1000.00. A typical deposit upon the signing of the Purchase and Sale Agreement is about 5% of the purchase price. For the home Buyer, any amount higher than this may be cause for alarm but the deposit amount does fluctuate with market conditions (lower in a Buyer’s market, higher in a Seller’s market).