Do You Have Skin In The Game

This post is packed with wisdom, Margaret Rome Baltimore 410-530-2400! Your insights on earnest money deposits really shed light on why they matter in the home buying process. Thanks for sharing such valuable information—it’s a game changer for anyone navigating this competitive market!

Excelleant explanation of the EM deposit, Thanks for sharing, make it a great Saturday and enjoy your Easter Holiday weekend! Bill

Hello, Miss Margaret Rome Baltimore 410-530-2400

I will add - hire a real estate professional to ensure timelines are met, reducing the risk of losing an EMD. 

Margaret it is interesting the role and amount of the EMD plays in getting the winning offer.

Good evening Margret,

Great post on Earnest money. Since we have an option period, if the buyer terminates during the option period they get back their earnest money. The standard is 1% of the sales price but its the option money that we look at because if the buyer terminates the Option money goes to the sellers.

In NYC- once an offer is accepted, no money changes hands for a while. The listing agent completes a deal sheet, typically within 24 hours of the accepted offer- and sent to both buyer and seller attorney's, and the buyer's attorney's along with a bunch of due diligence materials - i.e. offering plan, any amendments to that plan, condo/co-op buyer and sublets application, building financials for 2 or more years, budgets (if possible), alteration agreements, house rules, etc. The buyer's attorney will review board meeting minutes in the days/weeks to follow along with their own questionnaire to the managing agent of the building. Only after the buyer's attorney reports their findings/risks to the buyer does the buyer either back out or they sign the contract with a (typically) 10% good faith deposit. The seller then countersigns the contract- with the seller's attorney delivering the contract to all parties- then they are officially in contract. While some situations require more of a good faith deposit (not unusual in new construction on a graduated schedule)- it's pretty rare for us to have a good faith deposit less than 10% with condo's requiring 10% down, and almost all co-op's requiring 20% or more down payments. 

Good Faith is part of a successful process, and this is a detailed explanation on how to get a deal to closing. There are several areas of the process that will allow the buyers to get their deposits returned and the sellers have to acknowledge that as part of the acceptance of the contract.

Hello Margaret - any discussion of real estate can be confusing to some, maybe many.  Even when someone has previously participated, each transaction may be the same yet different enough.  Nuances exist to make wondering, what's going on, a reality as circumstances and situations seem to regularly appear.  Having local, professional and competent representation that you connect with is important.  

Hi Margaret,
A strong EMD backed by clear communication and diligence can really help seal the deal in a competitive market.

This is good information to share with prospective home buyers.