Highlands NC Real Estate, Understanding Earnest Money
Understanding earnest money goes hand-in-hand with Highlands NC real estate transactions. This is money that is tied to a contract to purchase real estate and often an important factor with negotiations. Understanding earnest money is important as well. An experienced Highlands NC REALTOR will explain earnest money and its impact on a real estate contract.
What is earnest money?
Earnest money accompanies a contract to purchase a Highlands NC home for sale. It is seen as a good-faith gesture that solidifies a buyer’s interest in a property. However, this is a necessary gesture. This money is non-refundable unless contingencies in a contract dissolve the contract. Typically the earnest money is 1 to 5% of the purchase price but there is no limit. When the earnest money is deposited into an escrow account the property is then changed from an active listing to under contract.
Can the amount affect the offer?
While there is no set amount for earnest money it does reflect the seriousness of an offer. This is especially true in a seller’s market. Some sellers see a larger amount as a more serious offer. As such, earnest money can prove to be an important negotiating tool in a tight market. A Highlands NC REALTOR will serve as your guide, offering her advice on what the best amount might be.
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.