Powered by RealTown Blogs

ARDELL's Seattle Area Real Estate Blog

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.

Comments (2) :: Post A Comment! :: Permanent Link
View more entries tagged with: None

Dec. 27, 2006 - Earnest Money Deposit

How Much Should it BE??  Looking back over the year, I have used everything from $1,000 to $50,000.  I haven't used less than $1,000 in over ten years, so let's call that the minimum.  $50,000 means you you reall want this house and there's no chance in hell you are going to change your mind about that!

While the seller benefits little whether it is $1,000 or $50,000, the seller is still impressed by the big numbers.  It tells them you are seriously committed to making it to the end.  That is a very important message to send...when it is true.  But if you have any reason to expect that you might change your mind, keep the number as small as possible...which is at $1,000. 

If you exceed your cash needs at closing with the Earnest Money Deposit, you will get the difference back at closing, assuming of course, that you DO close.

Comments (4) :: Post A Comment! :: Permanent Link
View more entries tagged with: None

ARDELL DellaLoggia of Sound Realty on Seattle Real Estate process and market including Kirkland, Bellevue, Redmond, Green Lake and most areas around the top of Lake Washington North of Downtown Seattle. Phone: 206-910-1000 - Mailto:ARDELLd@gmail.com

Real Estate blogs
Top Blogs


Seattle Real Estate
Redmond Real Estate
Bellevue Real Estate
Kirkland Real Estate
View my profile
Blog Manager

Recent Comments

RE: Homes For Sale in Redmond WA
"Amongst the major museums in the east bay is the O..."
"ブラントス`パ`コピ`瞳 マストな仟恬アイテムA?..."
RE: 40. Herstmonceux Castle
"domain authority backlinks"
RE: 38. Madonna's REAL House
"domain authority backlinks"
RE: What are Clerestory Windows?
"domain authority backlinks"


Rain City Guide
Emerald City
Seattle Google Map
Visitor's Guide to Seattle
Seattle SPIN
Seattle and Eastside Real Estate
The OTHER Blog
Home Inspector Stuff
Seattle Condo Info
Seattle Blog
Architectural Depot
Bus Routes
Kirkland Neighborhood Map
City of Redmond Maps
Ask Ardell
Inman News
Real Estate Blog
South Beach Florida Blog
Ian Watt's cool Vancouver Videos
Seattle Bubble Blog
Seattle Technology News
Seattle Teach Street
Seattle Big Blog
Seattle Bon Vivant
Seattle Craigslist
Redmond Library Blog

Inman News