The Earnest Money Deposit, aka EMD.

This is a deposit, sometimes referred to as a good-faith deposit, that goes toward the purchase of a real estate transaction. It's to show that you are "serious" about purchasing the property.

EMD amounts:

  • Under $100k purchase price - $500.
  • Over $100k purchase price - $1000.
  • $200k and above - 1% of the purchase price.
  • Earnest Money Deposits can vary and change during negotiations.

When the seller accepts the offer, the deposit will be deposited into an escrow account by the Broker*. The money will be applied to the buyers closing costs and/or purchase price at closing. If the offer is rejected, the EMD will be returned to the buyers.

A copy of the EMD will be given with the Purchase Agreement.

*The EMD must be deposited by the Broker within 48 hours by state law. Please make sure you have the money in your account (if paying by check) or have a certified check.

Eric Michael, Real Estate Professional
Remerica Integrity, Realtors
41000 W. 7 Mile #105
Northville, MI 48167

Cell: 734.564.1519
Fax: 248.912.9996

www.ShortSaleInfoMI.com

www.EricMichaelOnline.com

 
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2 Comments on The Earnest Money Deposit, aka EMD.

JUL
15
1,515,474 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

In general, though there is no set rule to EMD amounts in our market, the norm is to see at least 1% of the sales price.  The more money, the more serious the buyer.
12:16pm • #1
501,700 Points 25 Featured Posts Outside Blog Called Shot Master

Chris Ann, I try to get as much as possible for my listings and put up the least possible with my buyers.
12:41pm • #2


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Eric Michael, Metro Detroit Real Estate Professional 734.564.1519

Livonia, MI

More about me…

Remerica Integrity, Realtors®, Northville, MI

Address: 41000 W. 7 Mile, Suite 105, Northville, MI, 48167

Office Phone: (248) 912-9990

Cell Phone: (734) 564-1519

Email Me



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