Buying A Henderson Home: What Is Earnest Money?

When you've found the perfect Henderson home and decided to write the offer, one of the parts of that will be earnest money. Also referred to as a 'good faith deposit', earnest money shows the seller that you are serious about the offer and have some financial capacity to fulfill the contract.

Homes in Coventry at Anthem in Henderson NVGenerally earnest money is 1-2% of the purchase price. Like any other part of the offer, it is always negotiable. Earnest money is usually in the form of a personal check; some higher end properties prefer a cashier's check or wired funds. If the transaction closes, your earnest money is applied to the purchase price or closing costs.

If I am an out-of-state buyer, do I still need to send a check? Again, this is negotiable. For my buyers, I usually write that earnest money will be wired to the escrow or title company within 2 business days of acceptance of the offer.

If I cancel the purchase, will my earnest money be returned? That depends on when you cancel, and what the terms of the contract are. The Residential Purchase Agreement clearly defines the Buyer's due diligence period:


"Buyer shall have 10 calendar days from Acceptance to complete Buyer's Due Diligence. Buyer shall insure that all inspections and certifications are initiated in a timely manner as to complete the Due Diligence in the time outlined herein ... During this period Buyer shall have the exclusive right at Buyer's discretion to cancel this Agreement. In the event of such cancellation, unless otherwise agreed herein, the EMD (Earnest Money Deposit) will be refunded to Buyer."


Once we go beyond the Due Diligence period, your earnest money may be at risk if you cancel the Agreement. If you have any questions about this, consult your agent and/or an attorney.

 

 
This post has been included in Nevada Real Estate News Clark County, NV Real Estate News Henderson, NV Real Estate News
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1 Comments on Buying A Henderson Home: What Is Earnest Money?

FEB
13
2011
897,667 Points 35 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Great explaination of earnest money, John. That's an interesting contingency too. Do you have a lot of cancellations based on that? I guess it would allow for buyer's remorse.
7:59am • #1


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John Novak - Las Vegas and Henderson NV Real Estate

Las Vegas, NV

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Keller Williams Realty The Marketplace

Address: 2230 Corporate Circle, Suite 250, Henderson, NV, 89074

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News, statistics, and observations about the residential real estate market in southern Nevada, and my experiences and thoughts about being a REALTOR®.

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