Expert: Brian Bocchieri - 11/9/2007

Question
I plan to make an offer for a small strip center @ $750K.  How much I should put as honest monies?

Answer
Thanks for your question.  

If you are dealing with an agent they can guide you on this.  In most cases an earnest money deposit can be as little as $500.00 what needs to spelled out in the purchase agreement is when additional down payments will be required.  Such as: an earnest deposit of  $1,000.00 has been placed in escrow with the agent or an attorney.  A due diligence period of 10 days (30 days whatever you feel necessary) has expired an additional (dollar amount) will be placed as a deposit with said agent or attorney.  This is only a example your attorney assist you in creating you letter of intent.  

Depending on how the competitive the market is you may want to offer a larger deposit to let the seller know that you are a serious buyer and you are prepared to close the transaction.

I hope this helps.  Please feel free to contact me with any further questions or if you require a more detailed answer.

Wishing you all the best

Brian Bocchieri