Neil Garifnkel is quoted in an article by Laura Koss-Feder appearing in Newsdayand corcoran.com – “Sellers: How To Keep A Sale From Falling Through”
An excerpt appears below:
REQUIRE A SUBSTANTIAL AMOUNT DOWN AT CONTRACT
The 411: A few lending institutions still will lend money to those buyers who can put down only 3 percent or 5 percent, according to Mark Malsky, owner-broker with RE/MAX Signature Real Estate, which has offices in Babylon and Setauket. But it is preferable for the seller that the buyer be ready to put down 10 percent at contract to make a mortgage commitment more likely, says real estate attorney Neil Garfinkel, partner at Abrams Garfinkel Margolis Bergson, LLP, which has an office in Jericho. And, by having your attorney write the contract to require 20 percent down at closing, you are even more likely to have a buyer actually get a mortgage commitment than if only about 5 percent is put down, Taylor says.
Pros: You get to keep more money in your pocket if the deal dies.
Cons: You may eliminate some buyers. Also, getting to keep the deposit is “not a slam-dunk,” says Garfinkel, because purchasers still could want some of their money back and may want to take you to court.