The deposit that determines the house in the United States is typically the earnest money deposit. This deposit is made by the buyer to the seller as a sign of good faith and to secure the property while the transaction is being processed. The earnest money deposit is usually a percentage of the purchase price, often ranging from 1% to 5%, and is held in an escrow account until the sale is finalized.

The earnest money deposit is crucial because it not only demonstrates the buyer's commitment to the purchase but also provides a financial incentive for the buyer to complete the transaction. If the buyer backs out of the deal for reasons not covered under the contract, the earnest money is typically forfeited to the seller. Conversely, if the seller breaches the contract, the earnest money is usually returned to the buyer.

Data from the National Association of Realtors (NAR) supports the importance of the earnest money deposit. In their 2021 Profile of Home Buyers and Sellers, NAR reported that the median earnest money deposit was $5,000, which is 1.5% of the median sales price of $335,000. This indicates that earnest money deposits are a significant part of the home buying process, often representing a substantial financial commitment for buyers.

The earnest money deposit also plays a role in the negotiation process. It can be used as leverage by either party to negotiate better terms or to encourage the other party to fulfill their obligations. For example, if a seller is concerned about the buyer's ability to secure financing, they may require a larger earnest money deposit to ensure the buyer's commitment.

In summary, the earnest money deposit is the deposit that determines the house in the United States. It is a critical component of the home buying process, serving as a financial guarantee and a demonstration of good faith. The median earnest money deposit is $5,000, representing 1.5% of the median sales price, highlighting its significance in the transaction.