Contracts
In Michigan, a 'good faith' deposit larger than typical (e.g., 5-10% of purchase price) may be used by buyers to:
AReduce the purchase price
BSignal strong commitment to the seller and potentially make an offer more competitive in a multiple-offer situation✓ Correct
CEliminate the need for a financing contingency
DGuarantee the seller a commission
Explanation
A larger earnest money deposit signals to the Michigan seller that the buyer is serious and financially committed, which can make an offer more attractive in competitive multiple-offer situations—particularly relevant in heated markets like Ann Arbor, Grand Rapids, and Traverse City.
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