Show me the money!

Let’s talk about earnest money.

When a buyer makes an offer on a property, earnest money is tendered shortly there after. If everything goes as planned, the earnest money is applied towards the purchase price at closing.

However, sometimes the wheels fall off the bus!

Sometimes a buyer might decide to cancel their contract, typically this is because of inspection items. If this happens, and the buyer cancels before their specified deadlines, their earnest money is 100% refundable.

So, when might the earnest money be non-refundable? Only if a buyer passes their loan approval deadline and cannot or will not close.

This is very rare and in 600+ transactions have only had a handful of buyers end up losing their earnest money.

Please reach out with questions about earnest money or anything else real estate related.