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Trulia Oakla…, Home Buyer in Bronx, NY

What is "Earnest Money" and how much should one set aside?

Asked by Trulia Oakland, Bronx, NY Mon Apr 22, 2013

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Earnest money is a deposit made to show that you are serious about buying the property in question. It is not unusual to to see this amount be $1.

However, the more you put down the seriously your offer will be taken. I am not too sure about the laws in NY so I would tell you to get a good agent to help you, as the rules are not the same in all states. I think in NY it is a lot easier to lose the money than in California.
0 votes Thank Flag Link Fri Jun 14, 2013
The amount of money that is going into escrow after a ratified contract. Usually 3% in today's residential market. This is the amount of money the seller "may" keep if you did not close on the property or cancelled the contract for a valid reason, as stipulated in the offer. It shows you are a serious buyer and want to buy the property.
A
0 votes Thank Flag Link Mon Apr 22, 2013
Earnest money is usually 1-3% of the purchase price and this is deposited into an escrow account when a purchase contract has been ratified.
0 votes Thank Flag Link Mon Apr 22, 2013
Earnest money is the deposit that you submit when your offer is accepted - it is your "Skin in the game". Typically the earnest money is between 1-3% of the purchase price. Putting in less than 3% can make your offer seem weak however it means that more of your money will be tied up. I have some of my own tricks that I use when it comes to earnest money to make your offer seem even more compelling.
0 votes Thank Flag Link Mon Apr 22, 2013
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