Buying a Home
EARNEST MONEY AND HOW IT WORKS
Earnest money is essentially money put up front with an offer to purchase a home that shows your are serious about purchasing the home. The amount of earnest money varies but we recommend up to 3% of the purchase price of the home. This money is applied to the purchase price of the home at closing. The money is placed in an escrow account and will be refunded to you if the sale fails on a contingency. If you fulfill all of the contingencies in the contract, and then prior to closing terminate the contract you are putting this earnest money at risk.
The seller must take the home off the market after he accepts your offer. The earnest money ensures the seller that you are serious about closing the sale.
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