Only in exceptional circumstances - an all-cash buyer closing in two weeks, or a buyer offering significantly above asking price with no contingencies. A reduced deposit lowers the buyer's cost of walking away, which increases your default risk proportionally. If you accept 5% on a $2M sale, the buyer risks only $100,000 to walk - far less deterrent than the standard $200,000. Negotiate other structural protections if you concede on deposit amount.
From the seller playbook: Earnest Money Risk Protection
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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