Earnest Money Deposit – Yea or Nay
In real estate, one of the items that buyers provide along with an offer, is an earnest money deposit. The EMD is generally a check that is submitted along with the offer to show that the buyer(s) are serious about buying the property and that they have some “skin in the game.”
But in reality, there is nothing requiring an EMD to be submitted other than, that’s how we do it. And further more, there is nothing requiring that the deposit be in the form of money. Anything can be submitted as a deposit as long as the potential buyer(s) and potential seller(s) are in agreement. Don’t get me wrong, in the vast number of real estate transactions that take place, there is money on the line as far as earnest money goes.
The important thing to remember is that the money that is submitted on behalf of the buyer(s) is used to offset their closing costs. It is also important to remember that if the transaction does not go well, the buyer(s) runs the risk of losing their earnest money. In many cases, buyers who forego their earnest money may be out of the house hunting for some time.
If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.
As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.