“How much should my deposit be when I buy a home? I’ve heard you should make it as small as possible so you don’t lose much if you back out.”
Answer:
Small deposits do pose less risk to you as a buyer. But your deposit money is only at risk if you back out, and you’re not going to do that, are you? If you cancel your purchase within your rights in the contract, you should get every dime back.
The downside of a small deposit is that it shows the seller a lack of seriousness and may make them wonder if you even have enough money to buy their home.
My opinion is that a deposit should be 1% to 3% of the price. A bigger deposit — say 5-10% — can impress a seller and make him or her more likely to take your offer.
Good luck…
