Or maybe the roof needs fixing, tack it onto the purchase price and get it done before you move in. Another option well worth looking into is a lease-purchase contract. Great for the seller who wants out of a distressed property, or needs to sell quickly due to job change or other need. Great for the buyer whose credit history unfairly marks them as a poor risk, due to recent divorce, etc. More info here .
Earnest Money Make sure the earnest money goes into the seller's attorney's escrow account.
In the buyer's case, the less, the better. This deposit is part of your downpayment. The only reason you want it to be small is in case the deal goes sour and you have a hard time getting it back. You don't want all your purchasing cash tied up. Relax, the odds against that are extremely small.