How much deposit is standard for an offer?
How much deposit is standard for an offer? Stop guessing — here’s the number Georgetown sellers should expect.
Quick take: The short answer
In Georgetown, ON, a standard deposit on a residential offer is typically 1% to 3% of the purchase price. In competitive markets or for low-risk buyers, deposits often run 1%–2%. In stronger seller markets or where the buyer wants to show serious commitment, 3% (or sometimes 5%) is common. The exact number depends on price, market conditions, and negotiation strategy.
Why deposits matter — and why sellers should care
A deposit is the buyer’s skin in the game. It protects sellers from time-wasters and gives legal standing if a buyer walks away without cause. For sellers in Georgetown, deposits are not just a number — they signal buyer strength, speed to closing, and risk level.
Deposit size affects:
- Perceived buyer commitment
- Likelihood of subjects being removed quickly
- Seller leverage in negotiation
- Speed and certainty of closing
If you want a clean, fast sale with minimal headaches, deposit size matters.
Ontario rules that shape deposit practice
In Ontario, deposits are typically paid by certified cheque, bank draft, or e-transfer into the listing brokerage’s trust account. The deposit becomes part of the purchase price at closing. Real estate practice and brokerage policies can affect how quickly the deposit funds must be delivered after an offer is accepted — often within 24–48 hours.
Important legal notes for sellers:
- Deposit is held in trust by the brokerage or lawyer until closing or release.
- If a buyer breaches contract, the seller may be entitled to keep the deposit or seek damages, but legal steps matter. Don’t assume automatic entitlement.
- Always confirm trust-holding and timelines in the offer paperwork.
Georgetown market context — what’s normal here
Georgetown sits within the Halton Hills and the Greater Toronto Area’s commuter belt. Recently, the market has been active: buyer demand pushes offers up and speeds up timelines. In this context:
- Average residential deposits in Georgetown trend toward 1%–3% of the purchase price.
- For listings priced below $800k, expect lower percentage deposits (1% common). For higher-priced homes, 2%–3% becomes more likely.
- In multiple-offer situations, buyers often increase deposits to stand out. Sellers should treat higher deposits as a real qualifier.
Local buyers, often coming from Toronto or the GTA, may offer higher deposits to win deals. That matters for sellers deciding which offer to accept.
How to evaluate deposit strength as a seller
Don’t evaluate offers by deposit size alone. Use this checklist:
- Deposit amount (percent and absolute dollars)
- Type of funds (certified cheque/bank draft/e-transfer — e-transfer clears faster)
- Timing for deposit delivery (24, 48, 72 hours)
- Financing and subjects (high deposit + few subjects = higher certainty)
- Closing date and flexibility
If two offers are nearly identical, the one with a larger, faster-clearing deposit and fewer subjects wins.
Real examples — numbers you can use now
Example A — Modest market with quick sale needed
- Asking price: $700,000
- Standard deposit: 1% = $7,000
- Seller takeaway: Good for speed, moderate risk if buyer has subjects
Example B — Competitive situation with multiple bids
- Asking price: $1,000,000
- Buyer deposit: 3% = $30,000
- Seller takeaway: Strong commitment and fewer contingencies likely — prioritize this offer
Example C — Cash buyer with low deposit
- Asking price: $800,000
- Deposit: $5,000 (small flat amount)
- Seller takeaway: Ask why deposit is small. If buyer is cash and closing fast, might still be attractive. Verify proof of funds immediately.
Negotiation tactics for sellers — win predictable, fast closings
- Use deposit to filter buyers
- State a minimum deposit in listing or in negotiation guidance. Even saying “1% minimum” helps weed out casual buyers.
- Reward certainty, not just price
- Favor higher deposit with fewer subjects. A slightly lower price with strong deposit and clean conditions often closes while a higher-price risky offer fails.
- Push for faster deposit delivery
- Require deposit within 24–48 hours. Faster clearing reduces risk.
- Confirm fund type and proof
- Ask for certified funds or e-transfer receipts. If buyer uses bank draft, ask when it will be available in trust.
- Leverage deposit escrow language
- Include trust account and release conditions in the agreement so any disputes are handled swiftly.
- Use multiple-offer strategy carefully
- If you aim to get top dollar, invite best-and-final offers and set minimum deposit guidance to attract serious bidders.
What sellers in Georgetown must watch for
- Low deposit + long financing conditions: High risk. Buyer could fail to remove subjects.
- Cash offers with small deposits: Verify proof of funds. Cash + small deposit is unusual and needs vetting.
- Conditional offers with short subject removal periods: Favor these if deposit and price are competitive.
How an experienced listing advisor increases your sale certainty
A skilled agent spots red flags: vague deposit timing, unusual payment types, or buyers who stall on proofs. They also structure the offer to protect the seller, push for faster deposit delivery, and explain the legal implications. That reduces risk and increases closing certainty.
If you want a ruthless focus on getting your home sold cleanly and quickly in Georgetown — prioritize offers with meaningful deposits, clear delivery timelines, and verifiable funds.
Practical steps for sellers today
- Set a minimum deposit expectation in your listing package (e.g., 1% minimum).
- Ask for deposit delivery within 24–48 hours of acceptance.
- Require certified funds or verified e-transfer.
- Prioritize offers with fewer subjects, faster closings, and stronger deposits.
- Have your agent verify proof of funds and pre-approval documents before accepting.
These steps reduce the chance of a collapsed sale and increase your negotiating leverage.
Want help with offers and negotiation in Georgetown, ON?
This is specialized local work. If you want a decisive plan that converts offers into closed deals with minimal risk, get direct help. Contact Tony Sousa, local Realtor and negotiation specialist, at tony@sousasells.ca or 416-477-2620. Visit https://www.sousasells.ca for listings and seller resources.
FAQ — Offers, Deposits, and Negotiation for Home Sellers in Georgetown, ON
What is a deposit and when is it paid?
A deposit is an initial payment submitted with the signed Agreement of Purchase and Sale. In Ontario, buyers usually provide deposit within 24–48 hours after acceptance. The deposit is held in trust by the brokerage or lawyer and applied to the purchase price at closing.
How much deposit should I ask for as a seller in Georgetown?
Ask for 1% as a baseline. For higher-priced homes or competitive situations, 2%–3% is reasonable. You can set a minimum in your negotiation instructions to attract serious offers.
Does a bigger deposit always mean a better offer?
Not always. Bigger deposits show commitment, but check for other risk factors: financing subjects, home inspection conditions, or unclear proof of funds. Evaluate deposit alongside overall offer strength.
What if the buyer doesn’t deliver the deposit on time?
If the buyer fails to deliver the deposit within the timeframe in the agreement, you have legal options. Consult your agent and lawyer. Often you can consider the offer void or pursue remedies, but steps must follow the agreement and Ontario law.
Can I ask for the deposit to be higher than standard?
Yes. As a seller you can set expectations. In hot markets, sellers can push for higher deposits to increase certainty. Ensure your listing agent communicates this to potential buyers.
Are deposits refundable if the buyer has subjects?
If the purchase agreement contains valid condition clauses (subjects) and the buyer removes them properly or waives them, the deposit typically remains in place and goes toward closing. If a buyer legitimately withdraws within subject timelines, funds may be returned. Legal and contract details matter.
How should the deposit be paid?
Certified cheque, bank draft, or e-transfer into the brokerage’s trust account are common. E-transfer can clear quickly. Confirm acceptable payment methods in the offer.
What’s the difference between deposit and down payment?
The deposit is an initial, good-faith payment on signing. The down payment is the total cash the buyer contributes at closing toward the purchase price, of which the deposit is part.
If I receive multiple offers, how should I compare them?
Compare deposit amount and delivery timing, subject conditions, financing quality, closing date, and proof of funds. Prioritize certainty over marginally higher prices.
Who holds the deposit?
Typically the listing brokerage or the buyer’s lawyer, held in a trust account until closing or resolution.
Selling a home in Georgetown requires clear rules and fast decisions. Use deposit size and delivery speed to separate serious buyers from tire-kickers. If you want help turning good offers into closed deals with no surprises, contact Tony Sousa at tony@sousasells.ca or 416-477-2620. Visit https://www.sousasells.ca to start.
