Earnest money is the deposit made from the buyer as a good faith measure that tells the seller the buyer is serious about purchasing the home. The earnest money amount is typically 1 to 3% of the sale price and is held in escrow until the transaction is finalized. This amount will then be applied to the down payment of the home. This money is refundable in the event that the home falls through, as long as it is done before the contingency period is over and within the rules of the contract.
Read more: 8 Reasons Pending Home Sales Fail
Zach Child is a recent graduate from the University of Washington with an interest in digital marketing strategy. At Sundae, Zach is part of the team that distributes editorial content across social channels and is responsible for the creation of visual content that helps grow Sundae’s brand.