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Earnest money

Earnest money

What is Earnest money?

Earnest money is a cash deposit buyers put down to demonstrate a sincere offer. When a seller is looking at offers and thinking about what to accept, they want the buyer to be serious. Buyers can demonstrate this seriousness by putting down a deposit in an escrow account.

Earnest money is usually between 1% to 5% of the total home purchase price. In most cases, if the home purchase falls through, the earnest money is returned to the buyer.

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