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Booking Deposit for a second hand house

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  • 14-02-2015 1:59pm
    #1
    Sun in Capri
    Registered Users Posts: 211 ✭✭


    Hi all,

    What is the average percentage rate for a booking deposit on a second hand house? I have been asked for 4.5% by the Estate Agent on a house that is under €150,000 which seems exhorbitant to me.

    Your input would be appreciated.


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    #2
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    It's often a convenient round number that is sufficient to cover the EA's bill and a little over.


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    #3
    Sun in Capri
    Registered Users Posts: 211 ✭✭Sun in Capri


    How do you mean to cover the EA's bill? Do you mean to tide them over until the seller pays the EA?

    Thanks.


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    #4
    eezipc
    Closed Accounts Posts: 534 ✭✭✭eezipc


    I have been asked to pay a deposit of 10% on a second hand house. So your 4.5 seems good to me.


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    #5
    TheDriver
    Registered Users Posts: 12,417 ✭✭✭✭TheDriver


    Its only a booking deposit which is refundable at a days notice and also you should have 10% at least in your account ready to go. 4.5% sounds fairly small to be honest.


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    #6
    um7y1h83ge06nx
    Closed Accounts Posts: 5,029 ✭✭✭um7y1h83ge06nx


    Typically around here I notice it tends to be 7-8k that is asked for so of course percentage wise it depends on what you're buying.

    Wouldn't worry too much about it, just obviously ask for a receipt and keep it safe in case things fall through.


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    #7
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    Sun in Capri wrote: »
    How do you mean to cover the EA's bill? Do you mean to tide them over until the seller pays the EA?

    Thanks.
    Not exactly; the EA should hold that deposit in a separate account and not use it - after all, if the sale does not go through, it has to be refunded.

    When the sale is completed, the EA invoices the vendor for fees and outlay, and sends on a payment which is calculated as the deposit less the amount invoiced. That arrangement suits EAs very well, as they are assured they will be paid.


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    #8
    miezekatze
    Registered Users Posts: 1,341 ✭✭✭miezekatze


    That sounds like a small enough deposit to me tbh, we paid a bit more than that at the time. It's refundable anyway so I guess it doesn't really matter?


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    #9
    jon1981
    Registered Users Posts: 4,359 ✭✭✭jon1981


    A booking deposit is different to the actual deposit required by the bank. Typically EA look for 5k for a booking deposit.

    Jon


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    #10
    Gumbo
    Moderators, Society & Culture Moderators Posts: 38,628 Mod ✭✭✭✭Gumbo


    All going well we are about to buy for €215k. Booking deposit was €5k.


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    #11
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    275K here - Booking dep was 8K.


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    #12
    bidiots
    Registered Users Posts: 1,490 ✭✭✭bidiots


    I presume deposits are made out to the Auctioneers?
    Should this go through your solicitor?


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    #13
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    bidiots wrote: »
    I presume deposits are made out to the Auctioneers?
    Should this go through your solicitor?

    Not necessarily, you may be paying this down before one is engaged as we did. It's fully refundable for any reason at any time. The only major concern I would have is a smaller agent 'going bust'.


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    #14
    by the seaside
    Registered Users Posts: 389 ✭✭by the seaside


    MarkAnthony wrote: »
    Not necessarily, you may be paying this down before one is engaged as we did. It's fully refundable for any reason at any time. The only major concern I would have is a smaller agent 'going bust'.

    I'm new to the Irish process so excuse my ignorance. Is the booking deposit held in an escrow account or similar? Or if the EA goes bust are you just another unsecured creditor?


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    #15
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    by the seaside wrote: »
    I'm new to the Irish process so excuse my ignorance. Is the booking deposit held in an escrow account or similar? Or if the EA goes bust are you just another unsecured creditor?

    Pass on the unsecured status, there may or may not be a legislative framework.

    I made transfers to the account of Sherry Fitzgerald in Sutton. My 10% deposit (the 'proper' deposit that may be forfeited in certain circumstances) was made out to my solicitor minus the booking deposit.

    Hope this helps.


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    #16
    by the seaside
    Registered Users Posts: 389 ✭✭by the seaside


    MarkAnthony wrote: »
    Pass on the unsecured status, there may or may not be a legislative framework.

    I made transfers to the account of Sherry Fitzgerald in Sutton. My 10% deposit (the 'proper' deposit that may be forfeited in certain circumstances) was made out to my solicitor minus the booking deposit.

    Hope this helps.

    Thanks. It's a big chunk of money to hand over if you're not sure what happens if the EA goes under!


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    #17
    Sun in Capri
    Registered Users Posts: 211 ✭✭Sun in Capri


    Thanks all for your really helpful input. I


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    #18
    Rackstar
    Registered Users Posts: 1,347 ✭✭✭Rackstar


    Does a house go sale agreed after the booking deposit is paid?


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    #19
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    Rackstar wrote: »
    Does a house go sale agreed after the booking deposit is paid?
    That's the norm.

    Sometimes the EA delays changing the status until the agreement is a bit more solid - things like the purchaser providing proof of funds, or the survey commissioned by the purchaser being satisfactory. This is to avoid having to revert to a "for sale" status, which might raise doubts in the minds of other prospective purchasers.

    An EA who deals honourably with people will deflect enquiries in such circumstances. I have phoned about properties and been told "we're not showing it, because we are about to go sale agreed".


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    #20
    Rackstar
    Registered Users Posts: 1,347 ✭✭✭Rackstar


    P. Breathnach wrote: »
    That's the norm.

    Sometimes the EA delays changing the status until the agreement is a bit more solid - things like the purchaser providing proof of funds, or the survey commissioned by the purchaser being satisfactory. This is to avoid having to revert to a "for sale" status, which might raise doubts in the minds of other prospective purchasers.

    An EA who deals honourably with people will deflect enquiries in such circumstances. I have phoned about properties and been told "we're not showing it, because we are about to go sale agreed".

    Good to know. Thanks


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