When we find the home you want to buy, we’ll meet at our office to write the offer. Be sure to bring your checkbook! When you make the offer, you must include “earnest money,” sometimes referred to as a “binder” or “good faith” deposit.
Why do I need to make this deposit?
For the contract to be enforceable, a deposit is required with the offer. Secondly, by placing a deposit on the home, the Seller knows that you are serious about purchasing his home and not wasting his time. The earnest money should be an amount that reflects favorably on you. Your binder should be in the range of $1000.00 or more, depending upon the price of the home. An amount less than this may cause the Seller to doubt your ability to purchase, and could affect the Seller’s willingness to negotiate. Your objective is to make the best possible impression on the Seller.
What happens to my deposit?
Within 24 hours, your check must be placed into an “escrow account” for safe keeping. This money will then go your bottom line as part of your purchase funds if your offer is accepted and the transaction goes to closing.
In the event that we do not negotiate a contract on the home that you want, your deposit will be refunded to you in full. However, your escrow check must first clear the bank before the money can be returned, and this process typically takes approximately 10-14 days.