Avg. down payment to put a house under contract?

Question

What is the average down payment you need to put down with a seller to get a house under contract in order to wholesale it?  Not sure if it matters what area you are in but I'm focusing on NYC particularly Queens and the Bronx.

Ryan Webber · Answer

For listed property in my area,  I normally give $1000, but probably could get away with $500.

As Jon shared, the higher the price of property, the higher the earnest money.

For property directly from a seller I give $0.  My promise to buy is consideration enough for the contract to be valid.

Jon Holdman · Answer

Then you're probably looking at $1000 or so.  Each listing will have an amount they want for earnest money.  If you're talking half million dollar houses, they will want more than that.  Maybe 1% of the listing price.  You'll also need a loan approval letter or a proof of funds for offers made through a realtor.

Stephani Davis · Answer

$500- $1000 is pretty standard.  With REOs, anyway.  Some will want more, though.  It just depends on the seller.

Steph

Stephen Loguidice · Answer

What if you are dealing with a Realtor?

Richard Lorenzen · Answer

As little as possible.  Like Demos said, go for $1-$10.  If you're working with distressed sellers they usually won't press for a big earnest deposit, especially if you make it seem like a deal-breaker.

The market we're in right now gives you the upper hand even more.  You should be able to negotiate a very small deposit.

Demos Loizides · Answer

You really don't need anything, but a lot of people use $1 or $10 for an earnest money deposit.