Earnest Money is part of your total downpayment, it is listed that way on the HUD-1 at closing. The amount of earnest money would most likely not help you get a lower selling price. A larger earnest money deposit might get your contract offer more attention from the seller though. It does show the seller how serious you are about purchasing the property because you are willing to put that amount of money "at risk" should you obtain a ratified contract and then change your mind.
I agree with you that sellers might not consider your offer serious with a ten dollar earnest money deposit. Why should they accept your offer and take their property off the market if that is all you are willing to put up as the buyer?

You get the best advice from your own Realtor that is working for your interests helping you purchase a property. Find one in your area!!

I don't work in Salem but I did go to school there at Roanoke College - love that town!!

Best regards,

Ian~
Earnest money is a gesture of committment and serves as an indication to the seller of how serious you are about their property. Generally speaking, offers with a larger amount will be viewed more favorably than lower amounts.

The money is yours and therefore really isn't a leverageable element of a contract as it pertains to the sale price.

Earnest money is however something that can be lost, if you back out of a binding contract after all the contingencies and deadlines have past. You and your agent need to manage this timeline closely to ensure that does not happen.

Good luck to you.

Stacy Carter
Home Appreciators at ERA
678-641-6631

Hi Ian. As an experienced investor, realtor and real estate investor instructor I can honestly say...yes. Earnest money can be $1! The lower the ernest money, the less serious you appear to be from the perspective of the seller. The higher the earnest money the more serious you appear to be. If you only have $10 in escrow, you are more likely to walk away from the deal. In a similar vain, if you want to be taken seriously...structure your offers as cash deals, significant escrow money, as-is condition, with a 2 week closing. "Cash" does not always mean you have a mattress full of cash....if you have access to the cash through credit lines which you can show the seller, that is typically sufficient. The more contingencies you put in an offer, the less likely it is to be accepeted. I can talk about this topic all day......it's my passion!

Robert Greenblatt
Keller Williams