Question

Seller Andy require a 2.5% deposit on all offers. Buyer josh wants to offer $452,000 for the property. The property was appraised at $465,000. What must the earnest money deposit be if Josh presents his current offer?

Answer 1

Answer: $11,300

Explanation:

Given the following :

Buyer Josh's offering price = $452,000

Required deposit rate = 2.5%

Earnest money deposit is the product of :

Offering price × required deposit accepted

$452,000 × 2.5%

$452,000 × 0.025 = $11,300