Do you know the earnest money requirements in Denver? Relocating buyers often ask how much earnest money they’ll need when they make an offer on Denver real estate.
My answer? “It depends.”
Some brokers and sellers request 3% some request 10%.  Earnest money requests/requirements are entered in the MLS, so your Buyer Agent can tell you what the sellers have requested.  3% is more the norm for mid-priced homes, 10% is extremely high. However, for high end homes, closer to 10% isn’t too unusual.
What the sellers request and what the buyers provide are not always the same amount. When you prepare an offer for a property, consider how motivated you are, how strong you want to appear as buyers and how much money you want to risk.
Keep in mind that your earnest money is not at risk if you legitimately terminate the contract on inspection, appraisal or loan conditions. Make sure your broker and lender are keeping tabs on those dates.
Colorado is a very easy state to contract for purchase. We have state-mandated contracts that all real estate brokers are required to use. We close properties “at the table” in the offices of a title company (not in escrow.)
Earnest money is meant to show good faith on the buyer’s part.  Plan to deposit enough to show you’re serious, but not more than you could stand to lose in the event of a default.
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