What is a good faith deposit? This gesture is a monetary deposit given to a real estate agent when a buyer writes an offer on a piece of Michigan real estate. This deposit demonstrates to a seller that the buyer is sincere with their offer. Often times, offers will be written with no deposit, however, upon seller's acceptance, the buyer will then deposit X amount of money. 

How much should a deposit be? Always ask your professional northern Michigan Realtor on what their opinion might be, but $500 to $1,000 tends to be a standard for northeastern Michigan where real estate doesn't have as high of value. When purchasing northwestern Michigan real estate, the industry standard may be a little more. Ultimately, what do you think is a fair amount? Of course, it is based on the purchase price of the property. If you're looking at a $1,000,000 piece of Traverse City Michigan real estate, then you might consider a higher deposit to show you are serious. If you are buying a piece of hunting land in Cedarville Michigan that is $25,000, then $500 will be adequate.

When would you lose your good faith deposit? This answer to this real estate question doesn't vary depending on if you're buying Petoskey Michigan real estate, Shanty Creek Michigan real estate or Gaylord Michigan real estate. Basically, it all depends on the purchase agreement. In most cases, you would only lose your deposit if you were approved for your mortgage and basically decided at the last minute to not purchase the property. Most offers are contingent on financing, so if you are turned down by a mortgage company, don't worry, you will be refunded your deposit as well. If you're purchasing a piece of Upper Peninsula Michigan real estate, and the property does not appraise, you would get your deposit back because the mortgage would not be approved.