Earnest Money - What Do you See?

[DMG]

Not sure if it has the same name in all areas but the question is about "earnest money". It seems more and more difficult to get buyers to part with a fair amount of earnest money with their offers.

I wanted to start a thread to see what might be common across the various areas on earnest money or deposit on a home purchase and what you as a buyers agent or listing agent like to see or demand to see?

I am finding it more common to get only $500 on a typical $175,000 - $200,000 home and perhaps in the range of $1,500 on a $2750,000 - $300,000 home which I feel is weak, what are others thoughts and experience in your area?

[OCTeam]

In our area of the county 2%-3% initial deposit is normal as liquidated damages should the buyer default is up to 3%. Less than 2% usually won't fly unless on some under $200,000 distressed properties, FHA loan, etc. In other more depressed counties, it is much less...maybe $10K on a $750K property we just sold. Interesting here, it varies by areas to where it may be 1% or less of the purchase price.

[Malok]

We like to see 1% for our area.

[loudog]

In our county we have a binder stage (intent to purchase) where buyers will put $500-$1000 down then another 10% at signing of formal contract.

[TrophyHomes]

We have $500 and $1000 as pretty standard earnest money deposits.

[Discover Davis Homes]

3% of the purchase price is typical in Davis where buyers tend to have resources. Most everywhere else in the region $1,000 to $2,000 is more typical.

[dylan]

We typically see about 1%, but we're seeing more and more deals go through with $500 EM on a $250,000-$300,000 house.

[metaylor9]

1% is pretty typical here, but $500 is also pretty common on some of the lower end homes.

[Sam Chapman]

1% or more is quite common in Austin.

[kevinhuntley]

I usually get 1000 for anything under 400,000. over I try for 3-4,000 dollars but it all varies.