Earnest Money and Your Offer on a Real Estate Sales Contract
While writing an offer on a real estate sales contract yesterday, my Buyers and I contemplated how much earnest money to offer. We are making a fair offer but are also asking the Seller to contribute towards the Buyer’s closing costs. In our market, earnest money amounts are expected to be approximately 1% of the sales price.
Whatever amount a Buyer pays in earnest money is credited towards his required down-payment at the time of closing. So why not write a 2% earnest money check and impress the Seller? A larger amount of earnest money seems to offer the Seller more comfort that a Buyer’s financing is solid and that he intends to proceed and successfully close this transaction.
So, on a $120,000 home, we wrote a $2,500 earnest money check.
Hopefully it will show the Seller that the Buyer is truly earnest about purchasing his property and he will agree to the Seller concessions requested!
If you have questions about the purpose of earnest money and when it’s cashed, please read this previous post I’ve written about Earnest Money and Your Offer on a Real Estate Sales Contract.
Lori Cain is a residential Realtor with Chinowth & Cohen Realtors serving the greater Tulsa Oklahoma area, including midtown Tulsa, Owasso, Broken Arrow, Bixby, Sand Springs and Jenks. Please visit Lori’s web site, LoriCain.com or call 918-852-5036.