Earnest Money in Real Estate

Earnest money is a deposit made by the home buyer to the seller, showing a commitment to purchase the property. This deposit is not made until the seller accepts the buyer’s offer on the property.

The earnest money is often held in a third-party escrow account until the transaction closes. Although commonly used in real estate, earnest money is optional.  But some sellers may not even entertain an offer on the home if the buyer doesn’t include earnest money, NAR says.

For full blog post, visit https://www.nar.realtor/magazine/real-estate-news/sales-marketing/earnest-money-in-real-estate-refunds-returns-and-regulations