|
Earnest Money
At the
time you make your offer you will be expected to put up earnest
money in the form of a check. The amount will vary, Sharon
has worked with investors that have put up as little as $10.
However, the purpose of earnest money is to show that you, the
buyer, are in earnest. $1,000 is typical for many
resale homes; $2,000 for more expensive homes and $5,000 if you
have a statement to make. If you plan to purchase your new
home with 100% financing, or if you plan to draw all of your
downpayment from the proceeds of the sale of your current home,
or if there is some other reason you want to place a smaller
amount of earnest money down, Sharon will be happy to negotiate
on your behalf.
The
earnest money is usually held in the escrow account of the
Selling Broker. Sometimes the Listing Broker holds the
earnest money in an escrow account and sometimes the earnest
money is deposited into the operating account of the Builder.
If you
and the Seller are not able to come to agreement on all of the
terms and conditions of your Purchase and Sale Agreement and the
house does not go "Under Contract", your check will
not be deposited and you will receive a refund of your actual
physical check.
Once the
house goes under contract the earnest money is deposited and
there is a procedure that must be followed before the earnest
money can be released. Sharon will be happy to explain the
entire process to you, just give her a call or e-mail.
The
earnest money goes toward your costs to close, downpayment,
closing costs, etc.
|
