Check out my video on everything you need to know about Earnest Money (cuz most of us are like... whats that???). Knowledge is power, lets get your questions answered!Hello, today I want to talk to
Dated: October 6 2020
Check out my video on everything you need to know about Earnest Money (cuz most of us are like... whats that???). Knowledge is power, lets get your questions answered!
Hello, today I want to talk to you about the term earnest money, what it means what happens with the funds and how you can be more prepared, either as a first time homebuyer or if you're considering scaling up selling your home repurchasing, I promise, a couple minutes of your time will be well worth the peace of mind, you'll have to feel prepared as you're planning your next real estate transaction. or Miss money is a term that you will run into when you're meeting with your real estate agent to place a purchase on a home. A lot of times instead of an earnest money deposit, these funds are thought of as a good faith deposit. This tells the seller that you're placing an offer on their home, and that you're willing to put your money where your mouth is, you're not just writing something down on a piece of paper. But you're saying hey here, here's money to follow my commitment to see this purchase through from today. any obstacles that might happen all the way until closing day. All right, so rewind, a couple of facts that you'll want to know about earnest money, K, these are funds that need to be liquid, they need to be available when you place an offer on a home. But don't freak out, because these funds will go either towards your downplayed payment, or the closing costs that you will incur during the sale of this process. So usually, when you're making an offer, you offer one to 3% the purchase price in earnest money deposit. Think about this. If you're purchasing a $200,000 home, this will be an amount of two to $6,000. It's not a huge chunk of money. This money will be placed in an escrow account. And then as you see the sale all the way through the closing day, that money will move from that escrow account, either like I said, towards your closing cost or towards the down payment that you've saved up for for that home. So just keep this in mind as you're planning either your first real estate transaction as a first time homebuyer or as you're planning to scale up or, you know change locations. This is money that needs to be liquid and ready to write a check or be transferred into an escrow account when you decide to place that first offer. Thank you guys have a good day.
Jeanette Kunz brings a passion for all types of real estate to her clients, including residential, commercial and investment properties. She has been a Top Agent for Lakes Area Realty since joining i....