The Importance Of Earnest Money For America 's Hot Housing Market With New And Pre Owned Homes

Decent Essays
In today 's hot housing market with hundreds of new and pre-owned homes available, it is not as hard to find a dream house as it once was. The trick now is to be able to buy the house - having a good credit rating, adequate loan, and making monthly payments may not be enough. Today 's real estate sellers are looking for better deals, and savvy buyers know just how to entice them to close the deal. These five tricks are easy to implement and can help any eager buyer secure their dream home. Earnest Money For decades, realtors have required an earnest money deposit from prospective buyers to show their honest intentions when making a bid on a house as well as to demonstrate that they do, in fact, have the means to support the purchase. What many buyers don 't realize, however, is that earnest money can be an alluring carrot to lead the seller to a contract. Most home sales require a $1,000 earnest money deposit (the money will eventually make up part of the buyer 's down payment), but choosing a larger figure will catch a seller 's eye. Earnest money is legally binding - if the buyer pulls out of a contract without just cause, they forfeit that money to the seller. By being willing to literally put their money where their mouth is, buyers demonstrate their sincere desire to purchase a home and encourage a seller to accept their bid. Higher Prices Money is a universal language in the world of real estate, and offering a bid higher than the seller 's asking price is a sure
Get Access