Getting ready for first deal-How much earnest money should I put down?

[Ginnie Vigansky]

I'm wondering if there is a typical amount to put down as earnest money? Thanks.

[Jonathan Greene]

It depends what market you are in and how competitive it is, as well as what type of property you are buying? If you want to be competitive and the market is hot, your total earnest money (all in before closing) should be at least half of your downpayment. So, if you are putting 20 pct down, you should have 10 pct in the bag before closing and 10 pct at close. That's a strong earnest.

I see way too many buyers and investors trying to put like 1k or 5k down prior to close, but that is no skin in the game and will not get real sellers to move.