Good Faith Deposit For Ventura County Home Buyers
- Written by Mana Tulberg
- Posted October 31, 2008 at 1:50 pm
When a home buyer looks into purchasing a home in Ventura County they need to consider the inevitable buyer’s closing cost.
Once a home buyer settles on a property and decides to make an offer a Good Faith Deposit, also known as Earnest Money Deposit, is required from the home buyer. Good faith deposit is a means to show the home seller that you are serious about purchasing the property.
In different areas of Ventura County, different expectations are set for the amount of the home buyer’s good faith deposit. The amount of the good faith deposit can be requested by the home seller or can be determined by the home buyer’s own discretion (with the help of their Realtor). Some home sellers prefer to have a good faith deposit check of at least 3% of the asking price of their home.
The home buyer’s good faith deposit check is kept with their Realtor until the home seller indicates acceptance of the offer they have made.
Once the home buyer’s offer has been accepted, the home buyer’s Realtor has 3 days to deposit the good faith check into escrow. The home buyer’s down payment is deposited into escrow at a latter date. The home buyer’s closing costs are deducted from these funds.
The good faith deposit amount is returned to the home buyer if the buyer decides to cancel escrow within 17 days after escrow has been opened.
If you need any help finding a home in Ventura County please don’t hesitate to contact me or call me:
805-443-8898.
Thanks Mana. I’m glad you mentioned that this amount is not a fixed 3%, but is determined based on the buyer’s and seller’s discretion. Some realtors have told me that the 3% rate is non-negotiable. I’m glad that you are keeping us informed.
Palmer, You are more than welcome. Most fees in a Real Estate transaction are negotiable.