Great article, and explanation of
earnest money, working towards saving mine now.
Think of Earnest Money as a sign of good faith that you’re a legitimate buyer. While we can’t speak for how things work in other parts of the nation, here in the Tennessee Valley it is normal for a buyer to submit Earnest Money for about 1% of the purchase price of the home along with an offer. Granted, that’s for a typical average-sized home.
Here’s how it works with our company:
Say the buyer offers $200,000 for a house. Along with the offer and their preapproval letter, they write a check for $2,000 made out to the real estate agency (in our case, Keller Williams holds the Earnest Money). While in the offer stage, a scanned copy is sent to the listing agent along with the other paperwork. The check does not go to the seller. If a deal can’t be worked out, the check can either be destroyed…
View original post 216 more words