Redfin

JUNE 23, 2025

It’s a crucial period to verify the property’s condition, ensure it meets expectations, and meet any financing requirements set by the lender. In some states, buyers may also pay due diligence money—a non-refundable fee paid directly to the seller in exchange for this inspection window.

Due diligence

Redfin

JULY 15, 2025

One way to do this is with a home sale contingency. Key takeaways A home sale contingency protects buyers from owning two properties at once. When deciding to accept a home sale contingency, consider market conditions and personal timing preferences. Table of Contents What is a home sale contingency?

Home sale contingency

Redfin

JUNE 11, 2025

In this article: Home inspection contingency Appraisal contingency Financing contingency Title contingency Home sale contingency Home insurance contingency Kick-out clause FAQs about contingencies in real estate 1. This real estate contingency protects buyers from overpaying and lenders from financing more than the home is worth.

Purchase and sale agreement

Redfin

JULY 30, 2025

Without a clear plan in place, you risk overcommitting yourself or falling in love with a home that stretches your finances too thin. This is more than just pre-qualification: It shows a lender has already vetted your finances. In the average market, a typical earnest money deposit is 1-3% of the home’s purchase price.

Earnest money deposit

Rochester Real Estate

NOVEMBER 5, 2015

Top Mortgage Blogs From 2017 Best Mortgage & Home Financing Blogs From 2017 We’re back! Below you’re going to find some incredible recaps of home financing and mortgage blogs that have been published during 2017. (585) 704-7095 Contact Now Search Homes Home Fair Housing S.O.P.

Finance

Redfin

JULY 11, 2025

When you make an offer on a home, you’ll usually include earnest money – a deposit that shows the seller you’re a serious buyer. This good-faith payment, typically 1% to 3% of the purchase price, is held in escrow and applied to your down payment or closing costs if the sale goes through.

Earnest money deposit

BAM Media

MARCH 5, 2025

If the seller needs a quick close, line up financing to accommodate. A Strong Earnest Money Deposit A standard deposit is 5%, but serious buyers should consider going higher10%, 15%, or even more. Covering the sellers portion can add thousands to their bottom line without increasing the official sale price.

Earnest money deposit

Redfin

JULY 21, 2025

Backing out without cause may result in losing your earnest money deposit. If you’re having doubts, want to reassess your finances, or simply change your mind, doing so before any paperwork is signed allows for a clean exit without risking earnest money or triggering legal consequences.

Earnest money deposit

Redfin

JULY 10, 2025

Credited toward the purchase price at closing Credited toward the purchase price if sale closes Fee amount 1-3% of the purchase price Often 0.1% of the purchase price, negotiated between the buyer and seller What is earnest money? Earnest money is a payment a buyer makes to show commitment to buying the property.

Due diligence

Redfin

MARCH 18, 2025

This deposit is usually between 1% and 3% of the homes purchase price, but the amount can vary based on the local market and the agreement between you and the seller. This ensures that neither the buyer nor the seller can access the money prematurely, protecting both parties during the transaction. Youre using a no-down-payment loan.

Closing

Redfin

JULY 14, 2025

Walking away from one could cost you your earnest money deposit (typically 1%–3% of the home price), and in some cases, you could even be sued for breach of contract. For example, a home sale contingency or financing contingency can create legal room to back out without penalty.

Earnest money deposit

Redfin

FEBRUARY 18, 2025

These costs are in addition to the purchase price of the home (if you’re buying) or the proceeds from the sale (if you’re selling). This is a huge advantage for buyers who may not have saved a large sum of money for a down payment. You can finance up to 100% of the appraised value of the home.

Closing costs

Redfin

JULY 9, 2025

It’s also a good time to check your finances. Are you looking at homes for sale in Juneau, AK or Miami, FL ? Work with your agent to determine a competitive price based on recent sales, current market demand, and how many buyers are interested. Start your home search Estimated time: 1-3 months Begin by defining your priorities.

Pre-approval

Redfin

JUNE 27, 2025

But stretching your finances too thin can lead to years of stress, missed payments, or even having to sell before you’re ready. If no agreement is reached and you have an inspection contingency, you can cancel the sale without penalty and get your earnest money back. How much money do I need to buy a home?

Pre-approval

Rochester Real Estate

NOVEMBER 5, 2015

Are your finances ready to buy a home, or will you be better off renting for a few more years? If your offer is accepted, you will sign a purchase agreement and pay an earnest money deposit. Final Loan Approval Before you close on the home, avoid making any changes to your finances that could undermine your approval.

Purchase and sale agreement

Redfin

JUNE 30, 2025

Clean terms, proof of financing, and flexibility can help your offer get noticed—even as a backup. It typically includes: The purchase price Contingencies (like financing or inspections) Requests for the seller (such as covering closing costs or repairs) Other key dates (including response deadline, closing date, etc.

Earnest money deposit

Rochester Real Estate

NOVEMBER 5, 2015

What To Expect From Your Listing Agent Why For Sale By Owners (FSBOs) Fail Blog Featured Articles Home Buying Home Selling LOCAL Rochester NY Articles Should I Waive My Home Inspection When Buying A House? They can be expensive to take care of, putting a huge hit on your finances. The home of your dreams may have some serious problems.

Inspection

Redfin

AUGUST 5, 2025

In a multiple-offer situation, sellers look at a number of different variables between offers, from inspection timelines to appraisal guarantees, to financing terms. Cash offers often outcompete buyers with higher financed offers. Offer a high earnest money amount Offer a high earnest money deposit when making a cash offer.

Earnest money deposit

Housing Wire

JULY 21, 2025

New homes are planned at Ishani Ridge in Pahrump, Nevada , with sales expected to begin in August and prices starting in the range of $260,000. The process includes selecting a home, submitting an earnest money deposit and e-signing of a purchase contract. . — one of the largest homebuilders in the U.S.

Earnest money deposit

HomeLight

DECEMBER 12, 2023

A mortgage contingency protects you in such situations, ensuring that you’re not left holding an empty bag if the financing falls through. These typically include the amount of time you have to secure financing and the acceptable terms of the mortgage (like interest rate and loan type). Essentially, it’s a safety net.

Earnest money deposit

HomeLight

JANUARY 19, 2024

But it can also tilt a sale in your favor. You can then make a strong offer on your next home with no home sale contingency. This clause can play a huge role in a home sale because it protects you from losing your earnest money deposit or facing legal action if you’re unable to secure a mortgage.

Earnest money deposit

HomeLight

JUNE 23, 2022

If the appraisal comes in below the purchase price in the contract, the buyer can back out of the contract and receive their earnest money. The Financing Contingency : This contingency, sometimes called a mortgage contingency, is also only applicable to offers requiring a mortgage to purchase the property.

Earnest money deposit

Realty Biz

JULY 17, 2022

Kick-Out Clause vs. Home Sale Contingency. When the real estate market favors sellers home sale contingencies almost become extinct. In hot markets there would never be a need for a seller to even considered a home sale clause. Most real estate agents would laugh at the thought of seeing an offer with a home sale contingency.

Home sale contingency

Dwell Real Estate

JULY 10, 2020

The earnest money deposit—the cash you as a buyer offer to essentially call dibs on real estate—is one of the most important (and often misunderstood) parts of the home-buying process. In the Sarasota area, home buyers will usually put down anywhere from 1 to 5 of the real estate purchase price as earnest money. (If

Earnest money deposit

Dwell Real Estate

JULY 10, 2020

The earnest money deposit—the cash you as a buyer offer to essentially call dibs on real estate—is one of the most important (and often misunderstood) parts of the home-buying process. In the Sarasota area, home buyers will usually put down anywhere from 1% to 5% of the real estate purchase price as earnest money. (If

Earnest money deposit

HomeLight

OCTOBER 1, 2020

You now have skin in the game in the form of your earnest money deposit, plus you have a legal duty to buy the home (barring certain circumstances). They’re protective clauses you put in your contract with the seller that allow you an out if certain conditions of the sale aren’t met. Financing contingency.

Earnest money deposit

HomeLight

JUNE 9, 2023

Believe it or not, there are actually home sellers who offer to loan buyers the money to purchase their property: it’s called owner financing. Learn More What is owner financing? With seller financing, the seller can lend the buyer the additional $40,000 needed to make up the difference. Step one: Talk to an expert!

Finance

HomeLight

JUNE 29, 2022

Before you post the “for sale” sign in your front yard, it’s important to prepare yourself for a critical part of the home-selling process : negotiating with buyers. Here are nine expert house negotiation tactics to help you on your way to a successful sale. Making enough money off the sale to fund the downpayment on a new home.

Earnest money deposit

CT Homes

AUGUST 31, 2020

Financing Issues. There are truly several financing items that could be a potential problem, especially if the buyer is self-employed. Unless there is a massive earnest money deposit, they may be able to walk away if they find a property they like more while risking little. There is also the issue of the appraisal.

Earnest money deposit

HomeLight

JANUARY 10, 2024

Most purchase agreements are contingent on two key items: home inspection and financing. Essentially, they provide a way to back out of the sale if specific criteria aren’t fulfilled without facing penalties. Among the various types of contingencies, two stand out in most home purchase agreements: home inspection and financing.

Earnest money deposit

HomeLight

SEPTEMBER 11, 2020

No sales contingency? Make sure your agent stresses that your offer doesn’t contain a sales contingency. Determine how much earnest money to offer. An earnest money deposit (also called a “good faith deposit”) is money that accompanies your offer and communicates your seriousness to the seller.

Earnest money deposit

Realtor.com

OCTOBER 29, 2020

If something is wrong, you can request that it be fixed—or you can back out of the sale. Financing contingency: This contingency gives you the right to back out of the deal if your mortgage approval falls through. That includes making a down payment on a car, boat, or similar large purchase that has to be financed.

Closing

HomeLight

MARCH 2, 2023

Consider factors such as how long you plan to be in the area, if you have steady employment, and if you have enough money saved for not just the down payment, but for closing costs , maintenance, property taxes, and more. However, a higher deposit can be more attractive to sellers and make your offer stand out in competitive markets.

Closing

Realty Biz

NOVEMBER 11, 2020

When you begin an online search for a home, you may find some sale statuses you don’t fully understand. It is fairly obvious what is meant when homes have a status of “for sale” or “sold,” but some statuses may not be as clear. For example, if a home sale is contingent or pending, can you still make an offer?

Backup offer

Point2Homes

NOVEMBER 29, 2022

The earnest money deposit. But, by paying the earnest money deposit or down payment into escrow rather than to the seller directly, the buyer can be sure that if the sale falls through, they’ll have no trouble getting their money back. Check out the links below: Homes for sale in Austin.

Earnest money deposit

HomeLight

MARCH 6, 2023

Consider factors such as how long you plan to be in the area, if you have steady employment, and if you have enough money saved for not just the down payment, but for closing costs , maintenance, property taxes, and more. However, a higher deposit can be more attractive to sellers and make your offer stand out in competitive markets.

Earnest money deposit

HomeLight

JANUARY 3, 2024

Sometimes you come across a home for sale that checks off every box on your list, but the listing status says that it’s “under contract” or “sale pending.” In most cases, there are contingencies in the buyer’s offer that need to be cleared before the transaction is moved to the more solid “sale pending” status.

Purchase and sale agreement