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Earnest Money | Gwaltney Group | RE|MAX Results Blog

Friday, February 23, 2018   /   by Brian Ness

Why Do I Need To Put Down Earnest Money?

What is earnest money, and why do I need to include it with my offer on a property? Sellers see this deposit as a sign you are serious about purchasing a property. It tells the seller, that you, the buyer, are purchasing the property in good faith, and are willing to put money behind your offer up front. The earnest money also keeps buyers from writing purchase agreements on multiple properties.

How much earnest money is required?


There is no specific amount of earnest money required. The general rule of thumb is around one percent of the purchase price. In some cases, less money may be fine, or in multiple offer situations, some buyers will put down more to show how serious they are in order to get the property. The exact amount is something buyers should discuss with their own Realtor.

How do I pay my earnest money?


These days, most earnest money is paid either with a personal check, or by using an electronic funds transfer service. The purchase agreement will state t ...

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