When making an offer on a property, written or verbal, do you pay your deposit then or when the offer is accepted?
Cheers TPTP
I have found that you are required to make a small deposit on acceptance of offer – usually around $500-$1000 in my experience then follow up with the 10% within 7 days of finance aprroval (I have this written into the contract).
I have used a deposit bond for both my ip’s and this has saved me from freeing up cash to cover the deposit. This is particularly useful for long settlements.Hoep this helps [
]Cheers
Rob
When making an offer on a property, written or verbal, do you pay your deposit then or when the offer is accepted?
Cheers TPHi TP,
If your offer is accepted by the vendor you may be required to put down a small deposit,
Two or Five hundred,It is advisable to have some conditions attached to the offer, eg: Subject to finance, Building & Pest inspection etc, if you do a search on this forum you may find a lot more information on the subject, Good Luck.
Kind Regards
Steven[email protected]
http://www.mobilemortgagemarket.com.au
Ph: 0402483216I think it varies according to state. For example here in NSW I recently bought a place and was not required to pay any sort of deposit with the offer.
A week or so after contracts exchanged the vendors agent asked me to pop in to pay the 10% deposit.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
A client of mine (here in Victoria) was told by the R,Agent not to bother putting down a deposit,
However, I strongly advised her to put a deposit down, better to be safe than sorry.[]
regards Steven[email protected]
http://www.mobilemortgagemarket.com.au
Ph: 0402483216I was told by the real estate agent that on acceptance of my offer I would need to put down 3% deposit, and she said this was a standard amount.
I didn’t have to put in another 7% in 7 days, the 3% is my deposit right up until settlement.
-Ian
From what I understand (NSW) you don’t legally have to pay any holding deposit as they call it, even though we do pay that ourselves as the agent always asks for it. Ir’s just a good faith thing.
You can also negotiate to pay say 5% deposit or whatever the vendor will agree on. It’s then as usual paid on exchange of contracts.
When we have bought off the net, we have used fax and email for the offers/ contracts and sent the 10% by cheque.
Had an experience last year when one of our sons looked at a property with the agent, vendor accepted the offer, he paid a holding deposit and the agent wrote the receipt, congratulated him and shook hands. Later that night – we were at the local celebrating his first investment – the stupid agent rang to say he had missed out, that someone else had offered $5000 more. So much for the holding deposit and receipt. I would never deal with that agent again and told him so, not very politely. In a booming market he forgot about honesty.
Anna
I was told by the real estate agent that on acceptance of my offer I would need to put down 3% deposit, and she said this was a standard amount.I didn’t have to put in another 7% in 7 days, the 3% is my deposit right up until settlement.
-Ian
Nearly on all my settlements i have only ever put down $200 – $1000 (actually one of my settlements, i had to leave my drivers license there till i came back with some money), but this is set into my clause and is right up to settlement.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
though with every agent, i find they have different ways of holding deposits. One agent i deal with, doesnt request money off me straight away as he knows im good for it. But that depends on how well you know your agent.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”In Qld, I put $200 deposit down on 4 properties (that’s $200 for each property) and didn’t cough up the remainder of the 10% until settlement… the 10 or 20% issue is for the banks to worry about, not the agent… why let it sit in their trust account when you can still put it to good use in an offset facility or something?
rThanks for info, much appreciated!
Cheers TP.[]I know that feeling Anna…
Earlier this year, i saw an IP, bid, haggled on the price but agreed on an ammount the seller would be happy with. shook hands, was told the contract was on its way to solicitor, and i was getting finance company ready to do inspection…
The agent told me this while i was driving home, ie 2 hrs into a 3 hr drive… i told the agent this, and asked is the offer binding as i wasnt about to turn round and drive back another 2 hrs to leave a holding deposit (would have been closed by then anyway).. she said it was fine, as it wasn’t necessary…
3 days later no contract as yet, called agent, only to be told it was sold the next day to another person… i was given the line “Its out duty as agents to attain the highest price” …
NOT EVEN A PHONE CALL!! (she was probably ashamed of herself)… and the offer would hav only been $500 – $1000 above mine at the most!
This sort of garbage gives many agents a very bad name…. the same day i inspected another property, with the agent across the rd, put in an offer, but didnt get a reply till 4 days later… I told them my story about the agents who did me wrong just across the rd.. well at least the second time round the deal stood firm…
Sometimes i wonder how these people sleep at night???
Jason
Hi TeacherK6,
actually i do that alot, many of the properties that are suppose to be into a binding contract, i will offer just a slight higher bid, not to much but get the contract signed immediately and have the deal sealed, before the other party who also wishes to purchase the property and finds it already sold.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”TP
We have a standard business practice of faxing our offer through were practical so no money is required until the offer is accepted. Then we only pay $1000 deposit. With the exception of an angent asking politely for a bit more. And no more money is required until settlement which the bank takes care of from my LOC.
Cheers
Leigh K[]Carve your own path and lead the way …
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