Highlands NC Real Estate, Earnest Money
Meadows Mountain Realty, Highlands real estate experts
Earnest money serves as a buyer’s good-faith deposit in a Highlands NC real estate transaction, demonstrating a serious intent to follow through with the purchase. Typically submitted shortly after a purchase agreement is signed, this deposit is held in escrow and credited toward the buyer’s closing costs or down payment. The amount varies based on market conditions and property value, often ranging from 1% to 3% of the purchase price.
Security for the seller
Earnest money offers a seller a measure of security. If a deal falls through at the fault of a buyer, this one will compensate the seller for lost time and potential market exposure. If a buyer backs out without a valid contingency, such as a failed inspection or financing issue, the seller may retain the earnest money as liquidated damages. Conversely, if the transaction collapses for a reason covered by contingencies, the earnest money is typically refunded to the buyer.
Earnest money tied to good faith
Overall, earnest money plays a role in balancing risk between the buyer and seller of a Highlands NC property. It encourages both parties to proceed in good faith and helps prevent frivolous offers. As part of a broader contractual framework, earnest money reinforces the commitment. Of course, there are contingencies protecting both the buyer and seller in the event unforeseen circumstances arise.
Learn more about Highlands NC real estate
Contact our Berkshire Hathaway HomeServices Meadows Mountain Realty team today to learn more about buying and selling real estate in Highlands NC. We welcome the opportunity to update you on the market while answering all of your questions. Let our knowledge and experience serve as your guide to Highlands NC real estate.