$5000 deposit offer

Discussion in 'The Buying & Selling Process' started by Kyi, 31st Jul, 2018.

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  1. Kyi

    Kyi Member

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    As a seller is there any issue in accepting a buyers offer that only has a $5000 deposit?
    It is for a house in a regional town (only $250k) where sales are very slow... if it falls through there is no concern really - unless there are any out of pocket expenses for we haven't considered.
    Offer is unconditional (not subject to finance).
    We just need to understand if there is any risk around having a low deposit that we haven't thought of? Thoughts?
     
    Kyi, 31st Jul, 2018
    #1
  2. JohnPropChat

    JohnPropChat Well-Known Member

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    2% is quite acceptable especially if it's unconditional.
     
    JohnPropChat, 31st Jul, 2018
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Does the deposit cover the agent's fee?
     
    Scott No Mates, 31st Jul, 2018
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  4. Kyi

    Kyi Member

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    No it will be a little short of the agents fees. Would that cause any issues for us?
     
    Kyi, 31st Jul, 2018
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  5. Rich2011

    Rich2011 Well-Known Member

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    No building and pest clause in the contract?
     
    Rich2011, 31st Jul, 2018
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  6. Kyi

    Kyi Member

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    no
     
    Kyi, 31st Jul, 2018
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Depending upon who is holding the deposit (agent or the solicitor), the agent may need to wait to get the balance of their commission from the solicitor rather than just disbursing the balance of the monies to yourself.
     
    Scott No Mates, 31st Jul, 2018
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    Tom Rivera likes this.
  8. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Generally best practice for the agent to hold a deposit that's at least equal to their commission for the aforementioned reasons, but that doesn't have a great impact on you.

    Out of curiosity, why are they only putting down $5,000 if it's a cash sale?
     
    Tom Rivera, 10th Aug, 2018
    #8
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