Wednesday, July 18, 2012

What is Earnest Money?


Earnest money is generally provided either with the offer or after the offer is accepted by a seller. The earnest money is held in the listing brokers trust account or an attorneys trust account until the closing. The buyer is credited the earnest money at the closing. This money shows your intent and seriousness in the offer that you tender to the seller. In situations where there are multiple offers I have seen sellers pick an offer, if the terms are mostly the same, based on the earnest money. What a disappointment it is to a buyer who has their heart set on their dream home to lose out because they did not put enough earnest money in the offer. You should consult with your Real Estate professional when drafting your offer to put your best foot forward. Even in this market, buyers may only have one shot at offering their best terms for the home.

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