They're called different things in different states, but my question is....

Many times the prospective buyer looks at 4 or 5 prospective second homes, then drives back home and calls a few days later with an offer. I like to get a good faith deposit, feeling that the act of writing a check shows they are somewhat serious. What do you do in a situation such as this, when there is no binder or check?

In our MLS, the amount for earnest money requested by the seller, which is to accompany an offer, is identified.

Interesting. I like that, I wish that was done here in NY. At least where I am, I've never seen it.

New York does not require a deposit but I tell buyers that a deposit shows seriousness of intent with regard to their offer (and the bigger the deposit, the more serious it appears). Lack of a deposit makes them look like they are kicking tires in a used car lot on a Sunday afternoon! Without a deposit their offer may not be taken as a serious attempt to buy the property.

Indiana does not require a deposit either, but here is how I handle it...

If they are local, I get some details over the phone so that I can start the paperwork and make arrangement for them to come into the office to finish and sign the paperwork. And I tell them not to forget their checkbook.

If they are relocating to the area and have already gone home, we do all the paperwork by fax and I write the amount of deposit and the words "upon acceptance" in the offer. (EX: $1000.00 upon accepatance) I ask them to send the deposit immediately - to be returned if they don't come to terms.

As far as making a deposit or not making a deposit, like Foreclosure said, I tell them that is their choice, but that chances are:
1) the seller will counter for a deposit
2) the seller will reject the offer
(I also use similar tactics when they want to make a very low deposit.)

Then of course, there are foreclosures - some of the banks have minimum requirements dependent on the price. And some require certified funds - no personal checks.

IN Fl, there is nothing legally that requires a binder, but who would take their home off the market without a few $1000 as a "down payment?" Not me!

In cases where a buyer wants to "test the seller" I use a "Letter of Intent to Purchase."
Basically, it's a single page "proposal document" that says the Buyer makes this Offer _____________, under these Conditions __________

The seller has X many days to accept (or negotiate) and IF accepted, then a deposit of $XX will be forth coming.

I've had buyers want to fax 3 to 4 of these "Letters of Intent" at one time.

Saves a lot of time filling out contracts when buyers are making low ball offers that you know won't fly, or other, uh... strange requests!

Thanks. I do tell them, as Mr. Foreclosure said, that a good faith deposit makes it appear more serious. But that is when I have them in front of me. Thanks for your suggestion, Steve, I am going to use that letter of intent. And also Kokomo, thanks, your reply is a help to me, too.