Earnest money down on offer in California?

[Vamshi Ananth]

Hello Dear BPers, I have a very basic question. I am planning on putting in some offers and the agent I am speaking to mentioned that I have to put 1% earnest money down on offers that I make. I wanted to check with the BP world if this is a common practice here in California? 

[Kyle J.]

@Vamshi Ananth

There's no law that says it has to be 1%.  It usually just depends on what is customary for the area.  There certainly is no standard across the entire state.

Most of the agents I have dealt with have suggested I put down $1,000 (regardless of the price of the house) because that's the norm where they buy/sell houses.  I've even offered on occasion to put down a lot more than that, and they've told me it won't make a difference.

If your agent is telling you 1% is what they recommend, I'd do it because that's probably customary for your area.  

In the end, it doesn't really matter because you're going to end up putting 100% in no matter what you start with (unless you end up backing out).