Earnest Money – How Much and When Is it Cashed?

By
Real Estate Agent with Chinowth & Cohen Realtors License #142914

Earnest Money – How Much and When Is it Cashed? -  If you’re a first-time home buyer and have a lot of questions, please do not feel embarrassed! If we bought homes OFTEN, we wouldn’t have 1st-time buyers!Earnest Money

Probably the question I am most often asked is “How much earnest money is needed, and when is my check cashed?”

I recommend that Buyers write an earnest money check in the amount equal to 1% of the sales price. So, on a $100,000 house, that would be $1,000 earnest money.

The purpose of earnest money is to show the Seller that you earnestly intend to purchase his property.

You are asking the Seller to take his home off the market while you conduct inspections and make provisions for your down payment, etc. and in return, the Seller would like assurances that you are earnest in your desire to purchase his property.

We may verbally counter your offer back and forth, but once we reach an agreements on all of the elements of your offer, your earnest money check will be deposited in the escrow account of the Listing Realtor.

Your check is NOT held until closing.

Sale Pending

 

Earnest Money – How Much and When Is it Cashed?

If your financing falls through during the time period stipulated in the contract or if you find something during inspections that alarms you, your earnest money may be returned.

Other costs that you may incur up front include the cost of your appraisal and inspections.

For more information about buying or selling a home, please call me!

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Please visit my web site if you are shopping for Tulsa homes for sale or call 918-852-5036 for more information about Midtown Tulsa Real Estate. In addition to my advanced grasp of the internet to market your Tulsa home for sale, I include a home staging consultation with every listing AND professional photography - at no aditional cost to you!

Lori is a residential Realtor with Chinowth & Cohen Realtors serving the greater Tulsa area and specializing in downtown Tulsa and midtown Tulsa real estate.

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Topic:
Home Buying
Location:
Oklahoma Tulsa County Tulsa
Groups:
1st Time Buyers
Active Rain Newbies
Advice for Buyers
First Time Homebuyer
Posts to Localism
Tags:
earnest money
how much earnest money
when is earnest money cashed
sale pending

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Rainmaker
453,501
John Mulkey
Housing Guru
TheHousingGuru.com

Lori - Good points for those unfamiliar with the buying process. And, if you want to gain even more credibility with a seller, add a little extra earnest money.  Of course, the agent needs to make certain the contract is worded to protect both the buyer's interests and money.

August 16, 2009 11:03 AM
Rainmaker
483,441
Lori Cain
Midtown Tulsa Real Estate Top Producer
Chinowth & Cohen Realtors

John, you are exactly right. If my Buyer is making a very low offer, I encourage a larger earnest money amount. Definitely make sure ducks are in a row first!

August 16, 2009 11:09 AM
Rainmaker
213,452
Troy Erickson
Your Chandler, Ahwatukee, and East Valley Realtor
Terra Solis Realty, LLC www.ChandlerRealEstate.weebly.com

Lori - Good information for first time home buyers.  Great explaination on earnest money.

August 17, 2009 03:54 PM
Rainmaker
483,441
Lori Cain
Midtown Tulsa Real Estate Top Producer
Chinowth & Cohen Realtors

Thank you Troy - I'm surprised how many Buyers think that money is held until closing.

August 17, 2009 05:39 PM
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Rainmaker
483,441

Lori Cain

Midtown Tulsa Real Estate Top Producer
Happy to answer your real estate questions!
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