Earnest money is basically a deposit that signals to a seller your level of seriousness in buying a home and allows the seller to take the home off the market. Your earnest money will be collected up front with an earnest money contract. This money is then deposited in an escrow account with the title company. The title company will hold this money while the real estate transaction plays through. The actual amount of earnest money required can fluctuate with the market conditions. When there are large numbers of buyers in the market competing for a home, you may see earnest money amount requirements go up. When there are more sellers than buyers you may see this amount go down. Depending on your market area you can count on needing in the neighborhood of $500 to 1% of the sales price for the home in earnest money. This estimate can be lower or higher. Ask your local Realtor how much sellers are typically asking for. < Back Next> Find a home now |
| What is earnest money? |
