David Visentin: There is no standard amount for a deposit. Typically the buyer will make a deposit equal to about 5% of the purchase price. That said, there are exceptions to this rule. For example, last year I closed a deal on a $260,000 home in which the buyer only put down a deposit of $100.00! The reason? The buyer's money was tied up in other assets and the seller was anxious to sell so he agreed to be flexible with the deposit. The moral of this story? Don't hesitate to negotiate on the deposit amount if you need to!

Definitions

Down Payment: The down payment is the amount of money you are putting down on the purchase that will determine how much mortgage you will be carrying on your home.

Deposit: The deposit is just the amount you put forth to secure your offer and make it legitimate. The deposit does go towards your down payment on closing.