This is a payment made to the seller by the buyer to signify that they are fully intended to close on the property. If the buyer doesn’t close, the seller gets to keep the money for the time and effort already done.
It shows good faith basically.
If you want to learn more about working with us, you can visit https://www.effortlesshomebuyers.com/
Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
Find out more at
Listen to our Podcast:
-----------------------------------------------------------
So what is earnest money? Earnest money is a payment to the seller from the buyer on a contract that states, I fully intend to close on this property, and if I don't close on the property for whatever reason, you get to keep this earnest money for your time, it's basically to show good faith that we truly are looking to close on this property. Things to be wary of is if you ever get a contract where the earnest money is $1 or a hundred dollars, those people most likely are not gonna close either on time or at all, because they're not really risking a lot. So there's no penalty for them to close. What we usually recommend is that you aim for a thousand dollars earnest money at least if it's a very high value property, maybe 5,000 or $10,000 earnest money for, you know, half a million or a million dollar property.
No comments:
Post a Comment