Do You Know What Earnest Money Is and Why It's Important to Keep it Safe?
WHAT IS EARNEST MONEY? When a buyer puts an offer in on a home and the seller accepts the offer, it is known as mutual acceptance. In the offer that is written, the contract indicates the amount of earnest money that will be put down. Earnest money is usually between 1% and 5% of the home's purchase price. Earnest money is a "good faith" deposit. For a $650,000 home, earnest money may range between $6,500 and $32,500. Buyers may try to make their bid seem more "serious" by