Aug. 8, 2007 - Sarasota Buyers: How Much Escrow Do You Need?

I've been asked this a lot lately.  Just how much Escrow do you need to put down when making an offer for a home in Sarasota?  My feeling is this: 

You can put an initial $1,000 in Escrow when you write the Purchase and Sale Agreement with your Realtor.  Then an additional 5% of the purchase price when the offer is accepted.  So, a 500,000 home would have a total Escrow deposit of $25,000.

I've seen many folks lay down only $5,000 on a purchase offer for a $500,000 home.  When these offers come to my sellers, I always insist on the 5%.  The reason?  It's a lot easier to walk away from $5,000 than $25,000.   When making an offer in a buyer's real estate market, where the buyer is making a low-ball offer, having a sufficient escrow amount makes for a stronger offer.  It's important to view all the elements of your offer, not just the offering price. 

Good luck with your home purchase!

Dec. 13, 2008 - RE: Sarasota Buyers: How Much Escrow Do You Need?

Wow, I never knew that Sarasota Florida Real Estate & Stories. That’s pretty interesting...