When selling real estate at auction, what is the typical deposit amount due on the day of sale?

In an auction setting, the deposit amount typically varies based on the terms agreed upon by the parties involved. It is common for auction houses or auctioneers to establish a flexible framework where the deposit is determined through negotiation prior to the auction. Therefore, the answer highlighting that the deposit is an amount agreeable to the parties reflects the reality of auction practices.

In many cases, the parties may set a deposit that reflects their mutual understanding and comfort level, which can differ significantly depending on the value of the property and the terms of the auction. This allowance for negotiation ensures that both the seller and the bidder have clear expectations and obligations established before the auction takes place.

While it is not uncommon for auctioneers to suggest a standard deposit—such as a percentage of the sale price—the key point in this scenario is the flexibility allowed for the parties involved to reach an agreement that suits their individual situations. Thus, finding a mutually agreeable deposit is a standard practice in real estate auctions.