Earnest Money Deposit: This is the deposit you make to show your good faith that you are committed to purchasing the home. The deposit will not be refunded to you after offer acceptance unless one of the purchase and sales contract contingencies is not satisfied. Your earnest money deposit is credited back to you at closing towards down payment or closing costs if the offer is accepted.
Every time I write a Purchase and Sale Contract (Form 21) for my buyer clients I am obligated by the contract terms to collect the earnest money. The Purchase and Sale Contract spells out in detail what happens to this earnest money.
Earnest Money. Buyer shall deliver the Earnest Money within 2 days after mutual acceptance of this Agreement
to Selling Broker who will deposit any check to be held by Selling Firm, or deliver any Earnest Money to be held by Closing Agent, within 3 days of receipt or mutual acceptance, whichever occurs later.
There is no need to worry about your money, it will be placed in a trust account at either the selling brokerage or at the closing agent office, which is usually an escrow company. When it comes time to close your transaction you will see a credit for your earnest money on your closing statement. It really is still yours.
I spend a few hours a day going over market data for the local Puget Sound area. Usually I pick a city and do some research that includes the median sales price, market time and how many homes sold either for a month or for a 2, 3 or 5 year period. Today, I thought I would research an area where I started my real estate career. I chose to do the research by zip-code. I started selling real estate in 1994 in the Kent/Covington area of South Puget Sound. I lived in Covington Park and later Winterwood Estates. Anyway, I have decided to sell in that area again so I have been doing a lot of research and home pre-viewing.
You all know that saying – “You can choose your friends, but not your family”. It kind of applies when buying a home too. You can choose your home but sometimes the neighborhood becomes that dysfunctional family member.
1. STEP THROUGH THE LOOKING GLASS. Try and envision where you might be in 5-7 years. When buying a home you must consider your future plans, especially with the current economy. Today, buying with the intent of moving up in a few years may not be as easy as past real estate markets. You will want to make sure the home you purchase has several high end resale features. Don’t pick the home without the garage, the home that is on the worst lot in the neighborhood, the home that looks out on a busy street. You must always be thinking resale when you are making your home selection.
