Why Earnest Money Matters to Central Ohio Buyers and Sellers

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Earnest money is a deposit made by the buyer that shows the seller they are serious about purchasing the property. When the transaction is finalized, the funds are put towards the buyer's down payment. If the deal falls through, the earnest money may go to the seller.

Earnest money is important to buyers and sellers alike. Here's why.

Last year, I received several offers from other agents without earnest money. This is disturbing! Recently, I asked an agent why they didn't include earnest money in the offer. Why omit something so important? They replied, "It's a pain to collect and the buyer just gets it back, anyway."

Even though it's a pain, it's still important. Earnest money shows that the buyer is serious about purchasing a property. If you submit an offer without earnest money as a buyer, consider what kind of message you're sending. You can also make your offer more appealing if you offer more earnest money than what is typical. Doing so gives you an edge over other buyers.

As a seller, you should absolutely never accept an offer that doesn't have earnest money from the buyer. In Central Ohio, our typical earnest money deposit ranges from $500 to $5,000, depending on the price of the property.

Earnest money is an important part of the contract that sends an important message, and it shouldn't be overlooked. If you have any questions about this topic or more, give me a call or send me an email. I would be happy to help you today.