Why Earnest Money Matters

Great article, and explanation of
earnest money, working towards saving mine now.

Real Estate Blog

moneyThink 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…

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Author: Nakia Dawn Whittaker-Woody

I work full time as an Administrative Professional, which I enjoy very much. My favorite past times are DIY crafts , Retro Gaming, and Marvel Comic based movies. I also am a proud Geek and Mental Health Advocate. My two daughters and I live in Richmond Virginia. Email me at Nakia@MrsWhittakerWoody.com Phone: (804) 256-5599