What is the minimum earnest money a purchaser must deposit if giving a broker five days to secure acceptance of an offer?

In real estate transactions, earnest money serves as a deposit made by a buyer to demonstrate their serious intent to purchase a property. The amount of earnest money can vary based on local customs, market conditions, or specific requirements outlined in the purchase agreement.

When a buyer allows a broker five days to secure an acceptance of an offer, it typically implies a time-sensitive situation, where the buyer is indicating a commitment to follow through with the purchase if the offer is accepted. The custom for earnest money deposits in such scenarios often leans towards a percentage of the offer price.

The correct choice, which is 5% of the offer, aligns with common real estate practices where a more substantial earnest money deposit indicates a higher level of buyer commitment and seriousness, particularly when additional time is granted for brokers to negotiate. This percentage is seen as a balanced assurance for sellers, encouraging them to accept the offer quickly.

Other options reflect varying levels of earnest money but may not be considered sufficient in the context presented, where the buyer is providing the broker with a five-day window to secure an acceptance. Therefore, 5% is considered both reasonable and typical in many markets for such a situation.