Escrow deposit money

[Account Closed]

What is the percent deposit for escrow account,

They are asking me for 3.5% is that normal?

[Dan Maciejewski]

It's negotiable.  It's going to depend on the market (buyer's vs seller's), the asset class (single family vs small multi vs multifamily vs commercial retail) and how the local market is currently handling things.  Also, are you represented by a Realtor, and is the property listed with a Realtor, or are you going direct buyer to seller?

Generally, a larger EMD is seen as a stronger, more serious offer.

It's going to depend on what each side needs out of the transaction/negotiation.  Do they need to close fast or are they less motivated?  Is there a lot of competition for this asset type, or are you the only buyer on the horizon?  Are you short on cash and need seller closing cost concessions, or are you financing 75% or less?  Do you need 2 months due diligence, or are you only asking for a 10 day inspection period?

These (and more) are all negotiable points -- it's hard to tell what either side needs without any info.  As a seller, I ask for the most possible while as a buyer I want to give the least possible.

I can say for small SFRs under $250,000 in my market, people are still getting away with around 1% EMD.