Earnest Money Shows You Are A Serious Buyer!
Earnest money is the first deposit that every home buyer has to pay as to make the deal solid. It shows that you are serious about the offer and that you want to buy the seller’s property.
Although There is no fixed amount for earnest money because it varies with the state of market and the kind of property that you are purchasing I recommend 1% of the sales price.
It is determined in the Earnest money agreement which party should hold the earnest money. In Most cases the buyer’s Realtor deposits the earnest money with a Title company until the entire deal is made, When the deal closes the earnest money is also part of the purchasing price.
There are sections in the home purchase contract that explain the conditions to forfeit the earnest money. If the seller acts on all points of earnest money agreement, he gets to keep the earnest money. If the seller is unable to perform on all of the points described in the contract then you, the buyer will receive full or partial refund of that money.