Why does earnest money make a difference when buying a home?
I recently worked with sellers who received two offers. One was slightly higher. The other came with stronger earnest money and tighter terms. Guess which one they chose?
Earnest money isn’t just a deposit. It shows you’re serious. It tells a seller you’re not window shopping, you’re committed to seeing the deal through. It also gives you skin in the game.
Of course, it’s not a risk-free move. If you back out for the wrong reasons, you could lose it. But in most cases, it’s refundable under clear contingencies.
Strong earnest money, combined with a clean offer, can give you an edge, especially in a competitive market.
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