Realtor Question

[LFD2037]

We're selling our house & to put it politely, I don't trust my realtor's knowledge/experience. Quick question from those in the know:
Is $100 earnest money & 7 days (for buyer to back out) normal?
Seems like each home I've bought, I had to do 1% earnest money w/3 days for buyer to back out.
What you say?

[bwssr]

if it's ok with you...$500 is what I have seen the most...PM StanR...

[Grayson]

$100 for earnest money is low but 7 days is pretty normal, esp if they need to get inspector(s) lined up.

[AgBass01]

$100 is all earnest money that was put on our house when we sold it 2.5 years ago.

[Miller]

I think you are probably talking about two different things, but maybe I'm wrong. $100 for the Option/Inspection period and 7 days goes into a lot of contracts.

Complete separate from that is the Earnest Money which seems to be around 1% a lot.

[msubaseball31]

7 days is pretty normal. 1% is the standard for Earnest money.

[mesquite]

I'm a realtor. You are probably referring to the option out portion of the contract. $100 and 7 days is common for the option out. 1% of the sales price would be the earnest money.

[LFD2037]

Y'all are correct. The $100 is some sort of inspection funds & the earnest they are putting up is $1,000 (NOT 1% but better than $100). Thanks for helping me dig deeper!!! Like I said, realtor is really iffy! Thanks!
If I have other odd-ball questions, I'll post back.

[LFD2037]

A couple more questions:
Should I insist on @ least 1% earnest (selling price is $250K)?
If buyer changes their mind & back out, do I receive their earnest money?

[CSIceman]

A couple more questions:
Should I insist on @ least 1% earnest (selling price is $250K)?
If buyer changes their mind & back out, do I receive their earnest money?

Just sold my house last summer. We had $200 option (7 day) with 1% earnest on $270k house. A good friend was my realtor; I'm sure he got tired of me asking when the earnest money was "in play" aka mine if they back out. It was very confusing, but you don't automatically get the earnest money if the deal falls apart after the option. I'm sure a realtor will be along with a better explanation. Good luck; $1,000 earnest seems about $1,500 short to me.

[Mongo45]

I just bought a house last month I paid $100 and my option period was 10 days, $10 a day on a $225k house...

[garza]

$200 7 day option also when I sold my house.

[ken]

A couple more questions:
Should I insist on @ least 1% earnest (selling price is $250K)?
If buyer changes their mind & back out, do I receive their earnest money?

Yes you should insist on at least 1%.

The circumstances in which the buyer forfeits their earnest money is spelled out in the purchase contract.

[JeffJ]

If you don't trust your realtor why did you hire them?

[Throwin Darts]

I think you are probably talking about two different things, but maybe I'm wrong. $100 for the Option/Inspection period and 7 days goes into a lot of contracts.

Complete separate from that is the Earnest Money which seems to be around 1% a lot.

I think Miller nailed it