Why Deposits Are Important when buying and selling real estate
If you’re a serious buyer in the Toronto real estate market, it can be critical that you have, at-the-ready, the funds that will be required when placing an offer on a property.
A deposit is typically 5% of the price that you are offering on a property. It can be much more (and should be in many instances) and it could also be less. But 5% is a commonly used amount in Toronto.
This 5% should be quickly available, cash in a checking account or other account that you can withdraw instantly, without any delay, at bank branch. Many buyers have lost their dream home because they kept the money in investment or other accounts which could take days to access the cash. That’s a problem when the seller expects the deposit in a bank draft tonight in order for you to win a bidding war.
Even if you’re not anticipating a bidding war, anything can happen. You could find your dream home at any time. You’ll want to be ready and not miss the opportunity over the logistics of delivering a bank draft to the listing brokerage.
As a seller, the deposit that will accompany an offer on your house might make or break any agreement. The WEIR Team looks forward to guiding you.