The ‘top up’ deposit
At one point, it was standard that buyers would submit a portion of the deposit on acceptance of the offer and the balance on removal of subjects. However, the norm today seems to have evolved to the entire deposit being given when subjects are removed, and I don’t think this is good for the buyer or seller. Even though a deposit would be returned if subjects aren’t removed, the very act of giving the deposit engages the buyer and results in them being more invested in the process which is good for the buyer because they take the transaction seriously from start to finish. This means fewer games and a more honest and open negotiation.
Of course, from the seller's side, an accepted offer can result in loss of momentum from the marketing process, which can be a very expensive proposition in a shifting market. A deposit on acceptance of an offer will give the seller a little more assurance that the offer is genuine and not being used to better negotiate another transaction. I recently had a client tell me they didn’t want any games in the process.
The top-up deposit will help both buyers and sellers feel more comfortable in the sincerity of the process and creates more trust for everyone, which is something I think we can all agree is better for everyone!
Of course, from the seller's side, an accepted offer can result in loss of momentum from the marketing process, which can be a very expensive proposition in a shifting market. A deposit on acceptance of an offer will give the seller a little more assurance that the offer is genuine and not being used to better negotiate another transaction. I recently had a client tell me they didn’t want any games in the process.
The top-up deposit will help both buyers and sellers feel more comfortable in the sincerity of the process and creates more trust for everyone, which is something I think we can all agree is better for everyone!