Booking deposit % too large

castlewhite

I have had an offer accepted on an apartment, agent is looking for a booking deposit, no problem. However the amount he is looking for is 4.1%. This seems very high, I thought the norm was around 2 to 2.5%. I know it is refundable but I am trusting the EA to be able to pay it back. Any one any similar experience?

Bigcheeze

Booking deposits are normally a flat fee, usually minimum 5k.

ted1

castlewhite wrote: »

I have had an offer accepted on an apartment, agent is looking for a booking deposit, no problem. However the amount he is looking for is 4.1%. This seems very high, I thought the norm was around 2 to 2.5%. I know it is refundable but I am trusting the EA to be able to pay it back. Any one any similar experience?

In my experience there not set in stone, offer them what you can afford. Most times as long as they get 2k they'll be happy.

Do they even cash cheques?

Duvetdays

Ours was 10k booking deposit wasn't done in % but it would've amounted to about 4.3% I'd no problem paying it as it's fully refundable.

johndaman66

Went sale agreed towards the end of last year but was gazumped after. For what its worth I put down a booking deposit of €3,000 which was jut under 3% of asking price.

Bigcheeze

ted1 wrote: »

In my experience there not set in stone, offer them what you can afford. Most times as long as they get 2k they'll be happy.

Do they even cash cheques?

To be honest if I was selling and the EA told me the buyer couldn't afford the full booking deposit I'd be telling him to find me a new buyer. Plenty of people waste time and bid on houses without really understanding their finances.

The_Conductor

I know of two people selling in the 200-300 range at the moment- both of whom have instructed their solicitors that the booking fee is to be 10k. This equates with between 3.8 and 4.5% for the two properties. Both are insistent- that the 10k- is the deposit, regardless of the price- and to move on to the next bidder, if a prospective buyer doesn't lodge this promptly with the solicitor (who most certainly will deposit the cheque in his client account).

ted1

Bigcheeze wrote: »

To be honest if I was selling and the EA told me the buyer couldn't afford the full booking deposit I'd be telling him to find me a new buyer. Plenty of people waste time and bid on houses without really understanding their finances.

Well then you may easily be Losing a sale.

When we bought they wanted a 10% deposit. I told them that we are getting a 92% mortgage and a gift if some money closer to the sale closing. They were happy with that and took 1% deposit

BeatNikDub

The norm is usually 3% of the sale price rounded off.
4% ish doesn't sound majorly out of the ordinary.