Yes, earnest money is expected. It is generally worded in the purchase agreement. It isn't a fee. It's a deposit that tells the seller that you are serious and committed to buying the home.
The deposit works as a credit towards the purchase of the home. So, if there are applicable closing costs you owe at closing, the earnest money would be credited towards those costs.
There are multiple ways for the buyer to receive a refund of their earnest money if the transaction fails to reach specific agreements. Keep in mind, there is also wording in the agreement that would allow the seller to keep the earnest money. Be sure to talk to your real estate agent about these matters.
Syan Real Estate
Call/Text: (505) 730-8181
Now, consider that you make an Offer, get accepted, and you'all open an Escrow:
Then, three weeks from now, you see another house that you like better; so you just walk away from this one. Nothing to stop you!
What would you say, if YOU were the Seller?
Who's going to pay the $495 Escrow fee?
The Good Faith Deposit has nothing to do with the Financing or even CASH.