May. 2, 2009 - Earnest Money = How Earnest ARE you?

I just did a Twitter search for the term "earnest money" and found this tweet:

"working on making an offer on a house. Short sales take a while. Getting an addendum so there's no earnest money deposit"

Remember, the amount of Earnest Money answers the question "How EARNEST are you?" That's what Earnest Money IS!.

Maybe yours is the only offer today, but a short sale can normally take offers all the way to closing.  What will happen if someone comes along with a lower offer and $50,000 Earnest Money, saying they are WAY more "earnest" about buying this house than you are?

No earnest money depost = zero commitment to purchasing...in the literal sense. Why leave that door so wide open for another buyer to walk through and beat you out with?

Of course if you don't really want the house, and are not committed to buying it if the lienholder approves your offer, then "no earnest money deposit" is appropriate.