Earnest money deposit Home sale contingency Pre-approval 
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. To protect yourself, work closely with your real estate agent to include appropriate contingencies and timing strategies so you’re not caught in a bind.
HomeLight
JUNE 23, 2022
It is simply a period of time that the buyer sets to secure financing approval from a lender for the purchase of the home. If the financing fails, the buyer can pull out of the contract with a full refund for earnest money as long as it’s before the specified deadline. Buyer’s current home doesn’t sell in time.
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Realty Biz
NOVEMBER 11, 2020
This means that certain clauses have to be completed, by perhaps both buyer and the seller, for the sale to close. If these contingencies aren’t met, the buyer can walk away from the deal. They will also get their earnest money deposit back , and the home will go back on the market.
The Close
SEPTEMBER 10, 2020
Make Sure You Have a Proper Approval Letter From a Reputable Lender. At the first meeting with your buyer, help them understand the differences between a basic pre-approval and a full approval and how it strengthens their offer. Working closely with a lender should be mandatory before showing any homes.
Realty Biz
AUGUST 22, 2022
In my eagerness to buy my first home, I made a full-price offer with the only continency being that my mortgage was approved. I didn’t even include an inspection contingency. I’m almost certain that your biggest concern is about what will happen with your earnest money if you back out of the deal.
Realty Biz
JULY 1, 2023
Depending on how far along in the escrow process you are, this can be done in a variety of ways: Providing a deposit - If you have not yet made an offer on a home, consider providing an earnest money deposit as your first step.
HomeLight
MARCH 31, 2022
However, be aware that if you get a pre-listing inspection, you will be required to share relevant findings with buyers and how you did or did not address them. A pre-sale inspection also won’t necessarily stop a buyer from procuring their own independent inspection before closing. Get a pre-listing appraisal.
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