What is earnest money – What is an earnest money deposit – Earnest money explanation
I had a first time home buyer ask me what is earnest money when they were buying Novi real estate. As a first time homebuyer the whole home buyer process can be quite confusing. So what is earnest money? They say there are three parts to a legal contract when it a judge decides whether it is a legal contract. The three parts of a legal contract are: offer, acceptance, and consideration. So was there an offer? Was there acceptance? What was the consideration? Consideration in the real estate business is the earnest money. What is the earnest money? It is a check written as a deposit. So How big of an earnest money check do you put down?
You the Novi first time home buyer will write a check made out to the brokerage company. You usually write a earnest money check from a $1000 to $6000. The earnest money is a good faith deposit. It shows that you are serious about buying that Novi real estate. When you put down a larger amount of earnest money on a home it shows the seller you are committed to buying the home. As they say you have money committed to buying the home or have “skin in the game”.
So that is “what is earnest money” is! Here are a few more Wayne and Oakland County first time home buyer tips. Thinking about Making an Offer on a Canton foreclosure? Here are some offer tips on what to do
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I always like to give a couple of lake links. We have so many lakes around metro Detroit that you may not even know about. It is another option when you go to buy a home.
- Lester Lake in Waterford Michigan
- Little Cedar Lake in Orion MI
- Lakefront Homes for Sale Henderson Lake Hamburg Township Michigan
- Foreclosures Indian Lake Michigan