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 23, 2025

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. While not required everywhere, it’s an important part of the process in certain markets and is separate from the earnest money deposit.

Due diligence

Redfin

JULY 30, 2025

In addition to getting pre-approved, having cash reserves prepared for your earnest money deposit and other closing expenses is also one of the top tips for making an offer on a house. In the average market, a typical earnest money deposit is 1-3% of the home’s purchase price.

Earnest money deposit

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. If financing falls through, buyers can withdraw and get their earnest money back.

Purchase and sale agreement

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. Where does earnest money go?

Earnest money deposit

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

BAM Media

MARCH 5, 2025

A Strong Earnest Money Deposit A standard deposit is 5%, but serious buyers should consider going higher10%, 15%, or even more. The bigger the deposit, the stronger the commitment. 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

JUNE 27, 2025

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? If major repairs are needed, you may be able to use the inspection report to negotiate repairs or a lower purchase price.

Pre-approval

Redfin

JULY 9, 2025

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. This deposit shows the seller you’re serious about the purchase and holds your place in the deal. How many bedrooms do you need?

Pre-approval

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). Appraisal: The amount you can roll in is limited to the difference between the sales price and the appraised value. VA loans A VA loan is a mortgage loan guaranteed by the U.S.

Closing costs

Rochester Real Estate

NOVEMBER 5, 2015

If your offer is accepted, you will sign a purchase agreement and pay an earnest money deposit. (585) 704-7095 Contact Now Search Homes Home Fair Housing S.O.P. The seller might return with a counteroffer based on your offer’s price, contingencies, or other terms.

Purchase and sale agreement

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? When a home seller gets an offer that doesn’t have a home inspection contingency to complete the sale, they often jump on it.

Inspection

Redfin

JUNE 30, 2025

If you’re not working with a real estate agent Also known as purchasing “for sale by owner,” buying a home without a real estate agent means you’ll be responsible for drafting and submitting the offer yourself, handling all negotiations, and managing the paperwork. What makes a good offer stand out?

Earnest money deposit

Redfin

MARCH 26, 2025

Earnest money protection: This is the core of the clause – it ensures the buyer can walk away and keep their earnest money deposit if financing falls through. If the loan is approved within the contingency period, the sale proceeds. How does a financing contingency work?

Finance

Redfin

MARCH 7, 2025

Since the home inspection is primarily for the buyer’s benefit, ensuring the property is in good condition before finalizing the sale, the buyer usually covers the cost. This is the most common arrangement in most real estate transactions.

Inspection

Rochester Real Estate

NOVEMBER 5, 2015

If you find the perfect home and get it under contract, and then your mortgage runs into a delay, you run the risk of not being able to close by the closing deadline, and potentially forfeit your earnest money deposit to the seller. Not only could a delay cost you your dream home, but also the earnest money you put down on it.

Finance

Housing Wire

APRIL 9, 2025

I have even seen non-refundable earnest money deposits, Joe Tamburo, a Bergen County-based Coldwell Banker Realty broker, said. As recently as August 2019, Bergen County had an average of over 3,200 single-family homes for sale. Every property is going for way over asking with multiple offers.

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

Housing Wire

DECEMBER 10, 2020

“JetClosing was built to operate in a fully digital world, so we are well-positioned to help our agent and lender partners adjust to recent shifts in business operations and consumer preferences brought on by the pandemic,” said Matt Rockhold, vice president of sales at JetClosing.

Earnest money deposit

Housing Wire

FEBRUARY 9, 2021

This leaves you with three options if you want to move forward with the sale. If you had an appraisal contingency in your sales contract, you could do this without any sort of penalty. If you didn’t have the contingency, you’d have to forfeit your earnest money deposit in order to back out. One more option.

Earnest money deposit

Maximum Exposure Real Estate

APRIL 27, 2022

One of those things is whether or not your money is refundable. Many buyers and sellers will ask their respective real estate agents whether the earnest money deposit is refundable. Whether earnest money is […].

Earnest money deposit

Realtor.com

DECEMBER 3, 2020

Your earnest money deposit was too ‘cheap’ If there’s one part of the offer you shouldn’t cheap out on, it’s the earnest money deposit. If you need a certain home sale contingency, for instance, and can’t remove it, then move on,” Parnes says.

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

JUNE 23, 2022

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. If they get a better offer, they can give the buyer a period of time (72 hours, for example) to either remove the Home Sale Contingency or cancel the contract.

Earnest money deposit

HomeLight

DECEMBER 12, 2023

If your loan application is denied, or you can’t secure financing under the terms outlined in the contingency, you can withdraw from the deal and typically recover any earnest money deposit you’ve made. This is common if the proceeds from the sale are needed to secure the mortgage loan.

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 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

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. What are contract contingencies?

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

RIS Media

OCTOBER 22, 2020

Your client should also come prepared with a few other things: a pre-approval letter, earnest money deposit and, if they are paying cash, a proof of funds document. Bolin suggests that the higher earnest money deposit your client makes, the more the offer may stand out.

Earnest money deposit

CT Homes

AUGUST 31, 2020

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. The best way to deter “shotgun” bidders is to increase the earnest money deposit. Even when an offer is accepted it does not mean they stop looking.

Earnest money deposit

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