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Ernest money deposit

What is a earnest money deposit?

When ever you make an offer on a home it is customary to put down an earnest money deposit to show the sellers that you are serious about purchasing the home. The amount may very on a number of factors, but it is common for buyers to offer between 1-2 percent of the purchase price.

On the competition of a successful escrow your earnest money deposit in used to help cover cost associated with purchasing the home. However, the earnest money deposit can also serves as compensation for a seller. This usually only happens when you as a buyer does not purchase the home for reasons outside the guidelines of the contract.

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bre#01262388, nmls #1082667, Broker Shan Roberts