Multiple Offers and Deposit Requirements (Feb /2021)

Not offering an excessively high deposit, can lose a deal.

• 
• By Nancy Smith
• Qualicum Beach REALTOR®
• Published: Feb 14th, 2021 at 12:05 pm

First of all, in this market we are often seeing offers substantially above asking price, which is a difficult concept to swallow, and some buyers are surprised to see listing prices far in excess of Assessed Value. Secondly, many buyers have previously bought property with as little as $5,000 Deposit, so plunking down $100,000 deposit seems unimaginable.

In a few weeks, buyers who have had an accepted offer with the large Deposit, will be forking out an additional $800,000, so in effect the issue is not the money, but rather our past experiences and perceptions.

When buying in a hot Seller's market, one must reach for any and all opportunities to increase the chances of success. Unfortunately, one does not have the leisure of being complacent. It is best to work with your REALTOR to get the earliest showings, to help buy time to digest necessary information. Secondly, if you have been shopping and suffered disappointment of having offers lost, it is important to trust professionals, who will assemble as much relevant information as quickly as possible.

The Seller will see committment to the deal when facing multiple offers. There can be a perception that someone might only offer $5,000 Deposit because they might be relying on someone else to fork out the lump-sum balance, or they might have offers on more than one property and losing a minimum deposit by not completing, is just a cost of doing business or hedging a bet.  When a Buyer wants a property, they must convey confidence and committment.

The size of Deposit can matter.