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WHAT IS EARNEST MONEY?
In this video Chris Fiamengo gives his answer to the question… “What is Earnest Money?”
Earnest Money is a deposit that you pay to the seller to show good faith toward buying the home.
When you submit an offer you will agree with your agent on an earnest money amount. Typically between 1-3% of the purchase price.
When your offer is accepted you will have 2 business days to provide a check or money order to your agent or the escrow office.
This sum of money will be held by the escrow company and when the transaction closes will be applied to the down payment and cost of the home.
If the transaction does not close the earnest money is refundable as long as the buyer does not terminate the sale for contingencies not listed in the contract, or miss timelines as agreed upon in the contract, or if they simply decide to walk away for no reason.
Your real estate agent should keep you informed of any situations that puts you in danger of loosing your earnest money.
To see answers to many other real estate FAQ’s CLICK HERE.
WHAT IS EARNEST MONEY? Real Estate FAQ [VIDEO TRANSCRIPT]
Hey it’s Chris Fiamengo with The
Madrona Group and I am just going over some
frequently asked questions that I get in
my business. One of those is… “What is
earnest money?” Earnest money is a good
faith deposit. Anywhere from 1 to 3
percent of the purchase price is what’s
usually recommended. It just shows
the buyers level of interest in the
property. It doesn’t go towards
anything extra it goes towards the
purchase price of the house. This earnest
money gets held at escrow and a lot of
people ask is it refundable? That
just depends if you met all the
contingencies and you’ve adhered to all
the dates that are in the contract.
Basically you just can’t change your