Highlands NC Real Estate, Importance of Earnest Money
Buyers and sellers of Highlands NC real estate should understand the importance of earnest money. While earnest money does not always have a big impact on a transaction, it certainly can. As a result, both buyers and sellers should learn about the role earnest money plays. An experienced Highlands NC REALTOR will offer valuable advice on all of the parts and pieces of a purchase contract, including the road that earnest money plays.
Earnest money attached to contract
Earnest money will solidify a contract to purchase a Highlands NC property. When a contract is accepted by a seller this money will be issued by the buyer and put in an account until closing. This money is only refundable if contingencies are not met or agreed upon along the way. For example, if issues arise from a home inspection and a buyer decides to exit the contract as a result, he can get his earnest money back. If a buyer exits a contract because he simply changes his mind he will not typically get his earnest money back. As a result, earnest money shows sellers that buyers are serious about the purchase.
Is there a set amount for earnest money?
There is no set amount with regard to earnest money. However, the amount typically falls in the range of 1 to 5%. In a competitive market, a buyer may up the amount to demonstrate his intent. In essence, earnest money shows just how serious a buyer is. The important thing to remember is that contingencies matter. It is not easy to end a Highlands NC real estate contract unless a buyer or seller ends it based on a contingency. Getting earnest money returned needs to be by the book.
Learn more about Highlands NC real estate
Contact our team at Berkshire Hathaway HomeServices Meadows Mountain Realty today to learn more about buying and selling Highlands NC homes. 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.
Click here to read “What to Know About Earnest Money” from Realty Times.