10% Earnest Money Deposit

searcher profile

June 18, 2025

by a searcher from Louisiana Tech University - College of Business in Houston, TX, USA

Seller's broker is requesting a 10% earnest money deposit within two days of execution of LOI. I get that it goes to escrow and is refundable if I walk during due diligence, but it feels a little steep at this stage. Is this normal?
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commentor profile
Reply by a professional
from Villanova University in New York, NY, USA
Not normal, but Seller likely wants serious buyers only. Maybe you can prove you're serious in another way without putting up 10% of purchase price.
commentor profile
Reply by a lender
from University of Southern California in Los Angeles, CA, USA
Not normal at all and a huge deposit. How large of a deal is this? Seems very excessive.
commentor profile
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