Here are the pro’s and con’s of using an increased deposit from both the buyers and sellers point of view.

Seller: From a Seller’s point of view an increased deposit reflects the seriousness and sincerity of the buyers efforts in securing the deal. His good faith in proceeding with the deal.

Buyer:  From a buyer’s point of view, it may give them an edge over a competing buyer’s offer in a multiple offer situation.

Negative: only to a Buyer – if they remove all of their conditions – and then decide to back out of the deal – in which case their deposit would be forfeited.

Generally speaking the sellers want to be assured that the buyer is serious and sincere about the offer and seeing it through to possession. The size of the deposit is a litmus test for a buyers sincerity to see the offer through to completion. In addition the seller will be taking their home off the market – whilst the property is waiting for possession. If the buyer is not able to fulfill the terms of the contract (after all conditions have been met) then the deposit is often times the only recourse a seller will receive.

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Jennifer Kennedy
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