Who is Ernest and Why Should I give him Money to Buy a House ?

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

ernest    We take soooo much for granted....the terms we use every day....this "question" contest....thank you Banana Lady...made us search our memory for this question....when we were Newbies and had no outline of the steps that are required in the purchase of a house.

     Ernest is not really the character pictured at the left...he is not really a character at all...Ernest is Earnest.....Investopedia defines Earnest  Money as: A deposit made to a seller showing the buyer's good faith in a transaction. You as a buyer, are showing the Sellers YOUR character...what you are willing to financially show them to secure an offer on their home and "reserve" it for you until all the financing is complete and closing can take place.

   Some Realtors define it as "having skin the game"...showing the Seller who does not know the buyer at all ....that they have a sincere interest in purchasing their property.  We call it..."Putting your money where their house is" deposit.

     The money is held in a trust account ...think of it as an invisible safe....and kept there until closing at which time it applies to the purchase of the house...a sort of mini down payment which combines with the other money which is used for the down payment.

   Ernest is your friend.....smiling man "He"....is part of the persuasive power to show your sincerity to the Seller who is considering awarding you the sale of their home.

    The amount of earnest money may vary with the price of the home, what may be considered "traditional" for your market...ask your Realtor's advice when you determine the amount to write on the contract.

    If youare ready to "Meet Ernest"....and write an earnest money check for the purchase of a home in southeastern Wisconsin...Call the Hansons...we are happy to help you...If you live elsewhere...give us a call and we will be happy to refer you to a successful associate anywhere in the world to give you the professional real estate service you deserve.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
2,672,475
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

LOL, I love your title.  I remember when I bought my first (and current) home and was so confused by this.  I'm sure this will help many first time buyers.  Smart putting both spellings in the post.

May 24, 2012 08:57 PM #1
Ambassador
642,949
Mona Gersky
MoonDancer Realty, Dillsboro,NC - Sylva, NC
GRI,IMSD-Taking the mystery out of real estate.

Sally and David, Ernest should be perfectly safe too if the buyers have hired a good agent to keep track of all the important dates so the Earnest Money Deposit can be extricated if necessary. Good post.

May 24, 2012 09:12 PM #2
Rainmaker
1,847,090
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Excellent blog and points!  I love the character you have chosen to describe your point too!  That was a great movie!

May 24, 2012 09:27 PM #3
Rainmaker
3,255,308
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Thank u all for the comments...Ernest could be the new spokesperson for first time buyers !

May 24, 2012 09:29 PM #4
Rainer
104,889
Jason Stewart
Stewart Estates - San Diego, CA
Realtor

Great Post! Very informative! Have a good weekend!

May 24, 2012 10:48 PM #5
Rainmaker
3,133,850
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

LOL, oh that Earnest :-)  I hope you guys have a nice long weekend of relaxation, drinks and fun!

May 24, 2012 11:45 PM #6
Rainmaker
670,432
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

The higher the deposit, the more serious you look to the Seller. In a Short Sale ~ REO ~ Multiple Offer Market, a big deposit sends a message to the Seller that you won’t continue shopping around for a home since you have a lot to lose if you breach the contract, and that’s the offer that the Seller should choose.

May 25, 2012 07:33 AM #7
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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