Buying a Home · Straight answer from Kathleen
What is earnest money?
Earnest money is your good-faith deposit that shows a seller you are serious, typically held in escrow and credited toward your down payment at closing. On the North Shore it commonly runs 1% to 3% of the purchase price.
Also answered on this page
- Can I get my deposit back if I change my mind?
You wire or deposit the earnest money when your offer is accepted, the seller's agent or attorney holds it in escrow, and it is returned to you or credited at closing under the terms of the agreement.
If the deal falls through for a reason covered by your contingencies, such as an inspection finding or a financing failure, the deposit generally returns to you. If you walk away without a contractual reason, the seller may be entitled to keep it.
The details live in the purchase and sale agreement, and your attorney reviews them before you sign. Understand exactly what protects your deposit before you write that check.
On the North Shore
In the competitive parts of the North Shore market, a strong earnest money deposit signals confidence and can separate one offer from another, so it is both a protection and a strategy.
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Buying a Home
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