Derek Partridge Realtor Compass

Earnest money, let’s break it down.

What is it? Your good faith deposit that is held in escrow AFTER your offer is accepted by the seller.

How much? Completely up to you, as it shows how serious you are about following through and it shows you are financially ready. As a rule, I usually recommend somewhere between 1% and 3% of the purchase price.

Will I get the money back? This money will be applied to your cash to close when you settle on the property. If you have a home inspection and you don’t like what you see after that, you CAN get your earnest money back with written notice acknowledged in writing by the seller.

It needs to be available right away as it will need to be deposited with the title/escrow company within 1-2 business days of an accepted offer.

If you are relying on a consumer based websites estimated value of your home, you might notice, they vary WILDLY.

That is because most sites use an automated valuation model (AVM) to come up with a home value. It is a mathematical equation...

There is ALOT more to valuation of a home than a mathematical calculation. Even more so in the current environment.

Don’t be fooled and don’t rely on these equations for real business decisions. Instead, contact a trusted professional for a FREE evaluation of your home value if it is something you are considering.

I am always happy to do a little digging for folks, even if they are just exploring different options or ideas. A great conversation with some perspective can go a long way. I am here for YOU!

Everything in real estate is negotiable, so it is imperative that you know what services and experience you are getting when you are interviewing agents for the job.

As you know, with most things, you ‘get what you pay for’ and if you are willing to save money on commission, but loose money on the 1 chance you get to sell your house, it could net you less $$$ unless you are experienced and truly know what you are doing.