Everything You Need to Know
It is the sum of money the buyer deposits to get into a purchase agreement with the seller. It is also called a “good faith deposit.”
Earnest money essentially works as an assurance to the seller for his consideration of the buyer’s offer.
Is Earnest Money Required?
you can get into the purchase contract without issuing earnest money. It is not a requirement to get into a purchase agreement to buy a house.
How Much Should You Put Down?
here is no set rule for the earnest money amount. It's typically about 1% to 3% of the sale price.
It goes to the down payment when the deal goes through!
Who Gets Earnest Money if the Deal Falls Through?
It depends on who caused the deal to falter. The person who is at fault does not get the Earnest Money.
The seller can refuse to release the earnest money if there is a dispute on who is at fault for the deal’s fallout.