Blog > What Is Earnest Money in Real Estate?
Earnest money is a deposit buyers make to show good faith when submitting an offer. It demonstrates commitment and seriousness to the seller. The amount varies but typically ranges from 1–3% of the purchase price. This deposit is held in escrow and applied toward the buyer’s down payment or closing costs at settlement. If the buyer backs out for a reason covered by contingencies, the deposit is refunded. If not, the seller may keep it. It’s a key part of building trust in the transaction.
GET MORE INFORMATION
