Do I HAVE to Put Up Earnest Money When I Purchase a Home in Texas?

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Real Estate Agent with Berkshire Hathaway Home Services - Anderson Properties 518539


Do I HAVE to Put Up Earnest Money When I Purchase a Home in Texas?



Do I have to put up earnest money to buy a home in Texas? Well.... the answer is no AND yes.



Do I have to put up earnest money to buy a home in Texas?No, it's not required. HOWEVER.... earnest money demonstrates strength in your ability to purchase the home, as well as your sincere desire to follow through with your commitment.


That's where the "Yes" part comes in. Although earnest money is not a requirement to make a contract legal and binding, MOST sellers are not going to agree to take their home off of the market for a buyer who doesn't have earnest money. So yes, the seller may (and most likely WILL) require it.


Most things in real estate are negotiable. The amount of earnest money that is put down is one of those negotiable items. It can be as little as zero and go up to several thousand dollars. It can even be non refundable.



Every situation is different. The point is to come to an agreement between the buyer and the seller. If everyone is okay with it, NO earnest money is allowed in Texas. I have seen it happen only once in the past 8+ years.


 

Do I have to put up earnest money to buy a home in Texas?

 



Do I HAVE to Put Up Earnest Money When I Purchase a Home in Texas?


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This has been brought to you by YOUR Huntsville / Lake Livingston Area real estate professional. Before you buy or sell, call Joni Staples at (936) 650-9017. I look forward to earning your business and exceeding your expectations. Broker Associate with Berkshire Hathaway Home Services - Anderson Properties. Mike Huff, Broker.

 

Joni Staples, Broker Associate BHGHRE-AP (936) 650-9017 Copyright (C) Joni Staples     (936) 650-9017  www.JoniStaples.com

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Licensed in the state of Texas (0518539)                         

 

  Joni@JoniStaples.com

 

      

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Topic:
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Ambassador
1,064,504
Joni Staples
Your Huntsville / Lake Livingston Area REALTOR®
Berkshire Hathaway Home Services - Anderson Properties

Marilyn: That is VERY interesting. I am glad the title company deals with it. The broker CAN, but we always take it to the title company when we open title.

May 30, 2012 09:26 PM
Rainer
234,162
Doug Bullwinkel
NMLS #281609
Vitek Mortgage Group

I think there's a saying around that goes like this:  "Money Talks".  If a buyer is not serious enough to put up some good faith money, the seller will probably be more likely to accept an offer from another buyer that will.

May 30, 2012 10:01 PM
Rainmaker
1,516,859
Dorie Dillard
Realtor-Canyon Creek- NW, Austin TX Homes For Sale
Coldwell Banker United Realtors

Good morning Joni,

In 22 years of real estate I have never had a transaction with no earnest money tendered! Sellers are funny about that they like to see a buyer get some skin in the game if they are going to take their home off the market. In today's market with often multiple offers earnest money is an important part of the equation...if the buyer really wants the house they will pull out all the stops to make their offer attractive. P.S..you have been changing your header again! I like it!!

May 31, 2012 03:57 AM
Rainmaker
978,682
Robert (Bob) Gilbert
Your Katy TX Real Estate Expert
Berkshire Hathaway HomeServices Anderson Properties

Hi Joni,

As I know you are aware, Earnest Money in Texas is for liquidated damages in case the buyer walks from the deal without having a contractual ability to do so. I really cannot imagine any deal new or resale where no Earnest Money is required. Personally I think I will continue to tell folks EM is necessary no matter what as someone might get a crazy idea that they will get away without posting EM.

Good blog Joni..

May 31, 2012 03:43 PM
Rainmaker
44,993
Heather Milbourn
South Beaches Real Estate Professional

I'll be watching for new agent Ernest Money to start blogging LOL

June 01, 2012 05:14 AM
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