(325) 691-1410

  • Email
  • Facebook
  • Google+
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter
  • YouTube

Consumer Protection Notice
Information About Brokerage Services

  • Home
  • Search
    • Abilene Home Listings
    • Featured Listings
    • Search Texas Listings
    • Neighborhoods
    • Search by Map
    • Global Listings
    • New Listing Notifications
    • Open Houses
  • Buyers & Sellers
    • What’s My Home Worth
    • Real Estate FAQs
    • Mortgage Calculator
  • Military and Relocation
    • Relocation Info
    • U.S. Military on the Move™
    • Abilene Resources
  • About Us
    • Our Story
    • Testimonials
    • Together for Abilene
    • Stovall Careers
  • Our Agents
  • Contact
  • Blog
You are here: Home / Buyers / Earnest Money in the Contract

Earnest Money in the Contract

May 11, 2017 by Steve Stovall Leave a Comment

Earnest Money in the Contract

Today I want to talk to you about another provision in the contract, and that would be the earnest money. What is the purpose, how much should it be, and where does it go? Well, the purpose of having Earnest Money in the Contract is to do just that, to show that you’re earnest about buying the property and that you’re serious about it.

-So how much should it be? In our market it’s negotiable between the buyer and the seller, but we’re seeing earnest money around 1% of the sale’s price. So anywhere from $500 up to $5,000 in earnest money.

-Where does it go? It goes towards your closing costs. So once you get to the closing table, your earnest money is credited back to you and goes towards the cost that you would pay for the house at closing.

Now can you lose your earnest money? Yes you can. There are several contingencies when putting earnest money in the contract, there’s the option period and the finance period. During those contingencies you would not loose your earnest money, but if you go past all of those contingencies and then decided you don’t want the house, then your earnest money is at risk. You might also be in default on the contract. So it’s very important that when you go into a real estate contact that you are serious about it, and that’s the purpose of earnest money in the contract as well as on the property.

 

To read our previous blog, click here.

Filed Under: Buyers, Sellers

Leave a Reply Cancel reply

Your email address will not be published.

Categories

  • Buyers
  • Sellers
  • Uncategorized

Search Listings

$
$

Contact

Stovall Realtors
(325) 691-1410 Office
3382 S 27th Street
Abilene, TX 79605
Contact

Click for the BBB Business Review of this Real Estate in Abilene TX

Account Login

Login or Create Account

TREC Disclosures

Consumer Protection Notice
Information About Brokerage Services

sitemap   •   admin   •   ©2019 All Rights Reserved  •  Real Estate Website Design by IDXCentral.com