Question

Question was provided via image upload.

Explanation:

Identify the context of the question

The visible options are "10% of the home's purchase price" and "1% of the home's purchase price". In the Home Buying Process, these percentages typically refer to the standard amount required for an earnest money deposit (also known as good faith deposit) when making an offer on a house.

Determine the standard deposit percentage

An earnest money deposit is typically around \(1\%\) to \(3\%\) of the purchase price of the home, though it can sometimes go up to \(5\%\) in highly competitive markets. A \(10\%\) deposit is unusually high for standard earnest money, making \(1\%\) the most standard and accurate choice among the visible options.

Select the correct option

Based on standard real estate practices, the typical earnest money deposit is approximately \(1\%\) of the home's purchase price.

Answer:

• (A) 10% of the home's purchase price
• (B) 1% of the home's purchase price (Correct answer)