What Do Homebuyers Need To Know About Deposit And Earnest Money
How Much Is The Deposit/Earnest Money In NYC?
How Can You Get Your Deposit/Earnest Money Back?
Other Things A Buyer Needs To Know About The Deposit/Earnest Money
- You can pay more than 10% earnest money, but it might not make your offer any more attractive. In some rare cases, you can pay less than 10% earnest money.
- Earnest money is generally refundable, but if you’ve excluded contingencies that are usually present in the real estate contract to make your offer more attractive to buyers, you can lose the earnest money to the seller if the deal doesn’t go through.
- The deposit/earnest money process might be a bit different for new construction, i.e. when you are buying directly from the developer.
- Earnest money is part of what makes a real estate contract legally binding (in addition to both buyers and sellers signing and countersigning the contract).