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What IS Earnest Money? 
"YES, I am seriously (Earnestly) going to go forth with the process of buying your house so much so that I'm willing to put my money where my mouth is." This amount, although not part of the down payment,WILL go toward the amount the buyer will have to come to the closing table with.
The Market is moving....ARE YOU READY TO MAKE A MOVE??
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12 Comments on WHAT IS EARNEST MONEY? Some buyers are confussed!
Kathy - We so often just presume that the buyers knows the difference ... thanks for reminding us to make sure they fully understand.
That question comes up alot. Or, even more, "Do I have to put earnest money down?" I hate that question even more.
Jack - You are so right. SO MANY times, we as Professionals just take it for granted that the process of buying/selling a property is common knowledge. If that were the case, WHAT would the consumers need us for???
Nicole - I do hear that later question many times as well. Again, most buyers, especially the younger buyer, just doesn't know the process, or the steps. But, as a Realtor, I feel this is part of my job/service to them......EDUCATE.
Hello Kathy:
I wish you had underlined the fact that the earnest money doesn't disappear and is credited to the buyer in someway at closing. This is where I find most of the confusion. Good post.
This is very true and especially with the vast amount of first time home buyers we saw in recent months. Good job Kathy!
GREAT SUGGESTION! I will go right back and edit that phrase!
Thanks so much Victor!
Thanks to all of you! Glad to know its not just ME that gets these questions!
Happy SELL'ng out there to all
Kathy - Wonderful post - I always require the buyers put up a substantial earnest money 0r good faith deposit - especially in this market -
I suggested this be a featured post - hopefully the ones who make the decisions do the right thing here!
Kathy, You wrote an informative post about something we can take for granted but it is often confusing to our clients. I have also suggested for a feature.
Kathy - excellent explanation for the first time buyer, and reminder for the repeat buyer, as well as the agent.
Kathy- Clearly your post speaks to your experience in the matter. I think it is sad when buyers have no idea what the earnest money was for or where it goes after they write the check.
I often have buyers ask me (the lender) what happens to their earnest money deposit.
Good post.
SORRY ALL for not responding before now. I've been out away from the computer all day.
NICK - dear friend, that is SO SWEET OF YOU! This would be a first if it did get featured and I would be truly honored for you suggesting it!
Marchel & Mike - thanks for stopping by and leaving your very encouraging words. I just thought maybe I was the only one getting this type questions from buyers recently.
Melissa - your comments just confirm the importance of "schooling" the 1st time buyers that come our way. It is just NOT common knowledge of what the process is or what the steps are.
Again, THANKS all for stopping by!