What is Earnest Money

Sheila Howell's Blog Posts

May 11, 2024•1 min read

Earnest money, also known as a good faith deposit, is a sum of money provided by a buyer as a demonstration of their serious intention to purchase a property. Most times I opt for this to be held by the title company that is handling the closing. It is typically paid when an offer to purchase is made and is held in escrow until the transaction is finalized or terminated. The amount of earnest money can vary but is often a percentage of the purchase price, commonly ranging from 1% to 3%. If the sale goes through, the earnest money is usually applied toward the buyer's down payment or closing costs. If the sale falls through for reasons specified in the contract, the earnest money is typically returned to the buyer. However, if the buyer breaches the contract without a valid reason, the seller may be entitled to keep the earnest money as compensation for the failed transaction. Earnest money helps protect sellers from frivolous offers and provides assurance to both parties of the buyer's commitment to the purchase.

Sheila Howell

Hi, I’m Sheila Howell, a dedicated and experienced real estate professional based in Central Ohio. With my lifelong connection to the region and a deep understanding of rural areas, I am passionate about guiding buyers and sellers through their real estate transactions with care and expertise. Having reached the empty-nest stage of life, I bring a wealth of personal experiences and a strong commitment to building lasting relationships. My thorough knowledge of the local market provides insights to my clients, ensuring they make informed decisions and navigate the real estate process smoothly. Drawing from my contract negotiation and marketing expertise, I bring a unique perspective to the real estate industry. My goal is to make your real estate transaction seamless and enjoyable so that you consider me as a trusted advocate well after leaving the closing table. I would be honored to connect with you if you’re ready to embark on your real estate journey. Together, we can navigate the real estate landscape and find your dream home that perfectly reflects your lifestyle and aspirations.

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