Earnest Money Deposit

When you find a home and enter into a purchase contract, the seller may withdraw the house from the market. Earnest money, or good faith deposit, is a sum of money you put down to demonstrate your seriousness about buying a home.

In most cases, earnest money acts as a deposit on the property you're looking to buy. You deliver the amount when signing the purchase agreement or the sales contract. It can also be part of the offer. The seller and buyer sign a contract that defines the conditions of refunding earnest money.

In most cases sellers will ask for a good faith deposit. It safeguards the interests of the seller and the buyer.  It shows the seller you’re serious about buying the home, which can be reassuring to them if they agree to take the house off of the market while awaiting the appraisal and inspection results,

When buying a property with high demand, a considerable deposit can compel the seller to select your offer over others. You may also get more favorable contract terms.

Parties in a home sale can agree to apply earnest money to the buyer's down payment or closing costs. In such a case, you're putting up some amount for the home in advance. #earnestmoney