When you are selling your house, you will need to be knowledgeable about associated real estate lingo. You must be aware of the difference between an awning and a canopy; a loan and a mortgage; and above all, the difference between a down payment and a deposit.
Believe it or not believe it, there really are lots of house sellers who believe that these 2 separate types of payments are the same exact one, when they're not.
A deposit is the cash handed over to the owner when a buyer indicates a genuine interest to buy the property in question. It's a nominal sum which could be anything from 5% of the overall price, or as small as just a 3 or 4 hundred bucks. The deposit is credited to the customer and forms part of his down payment when the purchase pushes through.
Equity or a down payment, on the flip side, may be regarded as a preliminary payment on the property. It's given when the customer has determined to really get the house (unlike in your deposit, where it's given when the client indicates a want to get the place in question).
It is pretty simple to identify these differences. Keep in mind that the deposit becomes a part of the down payment after the trade pushes through, and is going to be significantly smaller. These combined with the outstanding balance should equal the total purchase cost of the house in question.
Hopefully that helps to clear up the difference between these 2 things. If you're in the Scottsdale, AZ area and have any further questions or concerns then get in touch with the Matheson Team, the top real estate agency in all of Arizona.
