Earnest percentage on new construction (contract, Realtor, house, price)

[charlygal]

I want to do an informal poll. What are you pros seeing for the percentage of price for earnest money on new construction homes? Anything under 5%?

[Brandon Hoffman]

Originally Posted by charlygal

I want to do an informal poll. What are you pros seeing for the percentage of price for earnest money on new construction homes? Anything under 5%?

Most of the high volume production builders are 2% in my market.

[BoBromhal]

earnest money, or non-refundable deposit?

how far along is the home?

what choices are made, and what choices are yours to make?

what does your Realtor say is common in your area?

[bbronston]

Ten percent is what I always hear. That doesn’t mean there aren’t exceptions but that’s what they tend to ask for.

[emm74]

Mine was a flat 10K, not based on the purchase price. And while I signed the initial purchase agreement, they held onto the check without cashing it for a couple of months, until after all of my design center choices were made and I signed the final contract.

There would have been an additional amount if my upgrades were above a certain percentage of the purchase price - I can't remember exactly what percent though, maybe above 20%? And certain choices like weird color carpeting or a green counter top, you had to pay up front for those (with the idea that if your deal fell through, they would have to rip it out and replace with something more neutral to sell as a spec house). I didn't fall into either category, so didn't have to put any additional money into it until closing.

[Okey Dokie]

We put $30,000 down on a $325,000 house by a local builder. $15,000 at contract signing, and $15,000 60 days later. We paid for all change orders and allowance overages as they occurred.