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In most real estate markets, the average good faith deposit is between 1% and 3% of the property's purchase price. It can be as high as 10% for highly competitive homes with multiple interested buyers. Some sellers prefer to set fixed amounts to help filter out buyers that aren't serious.
Colorado's Disclosure Laws. Colorado state statutes require that sellers of residential property disclose the following to buyers: That the property might be in a special taxing district, and where the buyer can go to find out whether the property is, in fact, within such a district.
The abbreviation ?MEC? (mutual execution of this contract) means the latest date upon which both parties have signed this contract.
The amount of earnest money required will be determined by the seller, generally in consultation with their listing real estate agent. Amounts typically range from 1% to 5% of the purchase price.
Usually, it ranges between 1-10% of the home's sale price. While earnest money doesn't obligate a buyer to purchase a home, it does require the seller to take the property off of the market during the appraisal process. Earnest money is deposited to represent good faith in purchasing the home.
How Much Earnest Money Do Colorado Home Buyers Need? The amount you're asked to put down as earnest money can vary. Typically, it's anywhere between 1% to 5% of the sale price of the home. For example, on a $300,000 house, this could mean anywhere from $3,000 to $15,000.
Through the adoption and promulgation of Commission Rule F, it became compulsory for all real estate brokers licensed by the State of Colorado to use Commission approved forms in most of their contracting.
For example, if the buyer isn't satisfied with the home's condition, or their lending falls through, they can typically get their earnest money refunded (again, this assumes the appropriate contingency is still in place). Once the buyer removes all their contingencies, then their earnest money is truly at risk.