Michael:

I absolutely agree with your broker. The first position buyer should always be willing to pay for the earnest money deposit to show their seriousness as well as commitment to the deal. Otherwise, why change the status from "active" to "pending" if the buyer is simply casting about between several homes to see which one approves the sale first.

My buyers always pay the EMD on a short sale home when they are purchasing the property. This also, in my mind, provides proof to the bank that the buyers are commited to the purchase.

Just my two cents...

Sincerely,
Grace Morioka
Area Pro Realty