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What is Earnest Money?

You have seen the available homes on the market that fit your budget and match your criteria and have decided on the one you want to make an offer on. GREAT!

In Utah, in order for your offer to be valid it is required to be backed by "good and valuable consideration."

In almost every case, this really means that the offer must be backed by a monetary deposit, called Earnest Money. The larger your earnest money, the stronger your offer, but if you breach the terms of the contract, you can lose your earnest money to the Seller. If the transaction comes to a successful close, however, your earnest money deposit is credited back to you.

One of the best ways to protect your earnest money is to get Pre-Approved for your loan before writing any offers.

You can be assured that as your Exclusive Buyers Agent, we will craft an offer that has favorable terms for the Buyer. We will do everything possible to protect you and your money.

Homebuyer Representation, Inc. is a Real Estate Brokerage that services Salt Lake City, Utah and surrounding areas. Agents are Exclusive Buyer Agents (EBAs) and represent BUYERS ONLY. For Free Reports or a Free Consultation, contact Homebuyer Representation at (801) 969-8989 or click the highlighted links in this paragraph.

Posted by Benjamin Clark - Exclusive BUYER'S AGENT - Certified Negotiation Expert - SLC, UT on 05/14/2007 01:29 PM

Comments (1)

earnest money, writing an offer, exclusive buyers agents, buyer protection

Originally posted at: Buying a Home in Salt Lake City, UT: What is Earnest Money?

This post has been included in Utah Information

1 Comments on What is Earnest Money?

MAY

2007

That's interesting that you must give something of value for your contracts to be legal. In Texas, earnest money is not required, however, a seller would be crazy not to expect earnest money as it shows how serious the buyer is. The amount of earnest money doesn't mean too much these days because there are too many ways for the buyer to retain the earnest money so the sellers still don't see a dime. However, the more earnest money they're willing to put up, the more it looks to me that the buyer actually has funds and is serious about obtaining a loan.

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