What would be an industry average to put as earnest money when making an offer
Of the deals I’ve done (not just MHPs, but apartment buildings, industrial, strip centers, etc.) on both sides of the equation, $5k to $10k usually does it.
Agreed. We’ve never done more than $15k. We’ve done as little as $0.-jl-
In SC you do not ‘have to’ put any Earnest Money down in order to have a Ratified Contract.In SC either the Listing Agent or the Buyers Agent’s Real Estate Company holds the Earnest Money in an Escrow Bank Account (which does not produce interest…if the Escrow Bank Account is interest producing then everyone needs to agree to this fact in the Ratified Contract).As a Real Estate Broker I have my Clients put down as little Earnest Money as possible and I hold the Earnest Money in my Real Estate Company’s Escrow Bank Account.On a recent MHP Sale the Buyers initially put down $1,000 Earnest Money on a $500,000 Sales Price. The Listing Agent made the Buyers increase the Earnest Money To $5,000.The Earnest Money just gives the Sellers a warm and fuzzy that the Buyers ‘potentially’ have more skin in the game.However, if you are a Buyer, please get an excellent Real Estate Agent that works with MHPs and gives you plenty of ‘outs’ in the Contract and allows you to legally get all your Earnest Money back if the deal does not suit you.We wish you the very best!
I am sure it happens, but I have never know a case where the buyer flakes out and the seller ends up with the deposit in his pocket. I view the deposit as a test of seriousness – the guy has the wherewithal to write a check that clears for some thousands of dollars. That cuts out a lot (but not all) of monkey business.