Earnest Money should preferably be in check or cashier's check form and written for an amount that both Buyer and Seller both feel is sufficient for demonstrating that the Buyer is, in fact, Earnest. Typically that means 1% of Sales Price. It can often be for considerable amounts and In CASH, if Buyer so Directs in Writing... It is actually part of the Down Payment or "Initial Investment" and if the offer is a Low Offer, you may consider a Much Higher amount. That said, if the Earnest Money is greater than the combined Brokerage fees, then the Selling Broker has to write a check to the Title Company, to cover the brokerage fees for the Buyer's Brokerage fees.An exception to the general 1% guideline is, if you bid directly "Online" with companies such as "Auction,com, (Where the Amount is stated as 5% of the Sales Price) and or other such firms...Then the Amount is Directed by such firm and They state where the Earnest Money will be deposited., such as in Auction.com...directly to a Bank of their choosing in Irvine California, however, You should instruct Your Agent to write directly into your Documents,(REPC) after your auction has been declared the successful bid, and all required accompanying documents have been successfully received by such Company, .that the Monies will be Wired directly to such Bank and always get the Names of Sending Employee and Receiving Employee and then direct that said funds Shall be transferred to Your Choice, or sometimes Their Choice, of The Closing Title Company...This keeps local control of your Funds, since many of the auction companies may not have Utah Brokerage licenses...Any Questions can be Text or called into 801-298-1234
Realtor Since 1973
Utah Select Realty Inc.