Michelle Wylie, your Realtor for Annapolis, Anne Arundel County and the surrounding areas

What is Earnest Money?

Before any document or agreement can become a legal and binding contract, for both sides, there has to be consideration. Something must be offered as evidence and proof that an agreement is more than just a person's word to buy. Earnest money is that consideration. The more money you put down, the more earnest you are displaying to the seller that you indeed want to buy his/her home.

But how much shows earnest?

An excellent question with no black and white answer. All real estate transactions are individual circumstances and situations that require different approaches. This is one of the many reasons you want to be professionally represented by Michelle Wylie, when it comes time to negotiate a contract. In general, earnest money usually falls within 1-5% of the purchase price.

When do I need to pay this?

You place earnest money at the time of an offer, either by check or money order. Earnest money is attached to the offer, therefore becoming part of the offer. The check is usually deposited within 24 hours of an accepted offer.

What happens to my earnest money and how is it used?

Earnest money will go into a trust account held by a third party. This way neither the seller nor the buyer has access to it. As you move toward closing the earnest money will be given to Escrow and be applied toward down payment or closing costs.

What happens if someone defaults? Do I get my money back?

This can be a very complex question to answer, depending on the situation. While this question can become difficult to answer in a simple question, generally if a buyer backs out for no legitimate reason, the seller would get the earnest money. The reverse holds true if the seller backs out for no legitimate reason. Then the buyer is refunded the money.

Your Annapolis realtor and Anne Arundel County realtor helping you find townhouses, townhnomes, single family homes, single family houses, condos, and duplexes. Serving Anne Arundel County, Calvert County, Charles County, Howard County and Queen Anne County.  Accokeek, Annapolis, Annapolis Junction, Aquasco, Arnold, Arnold real estate, Baltimore, Barstow, Bladensburg, Bowie, Brandywine, Brentwood, Broomes Island, California, Capitol Heights, Cheltenham, Chesapeake Beach, Churchton, Clarksville, Clinton, College Park, Columbia, Cooksville, Crofton, Crofton real estate, Crownsville, Crownsville real estate, Davidsonville, Dayton, Deale, District Heights, Dowell, Dunkirk, Edgewater, Edgewater real estate, Elkridge, Ellicott City, Fort Meade, Fort Washington, Friendship, Fulton, Galesville, Gambrills, Gambrills real estate, Glen Burnie, Glen Burnie real estate, Glenelg, Glenn Dale, Glenwood, Hampton Park, Hanover, Harbor Oaks, Harmans, Harwood, Highland, Hollywood, Huntington, Hyattsville, Indian Head, Jessup, Lanham, Laurel, Lexington Park, Linthicum Heights, Lisbon, Lothian, Lusby, Marriottsville, Mayo, Millersville, Mount Airy, Mount Rainier, North Beach, Odenton, Odenton real estate, Owings, Oxon Hill, Pasadena, Pasadena real estate, Port Republic, Prince Frederick, Riva, Riverdale, Saint Leonard, Savage, Severn, Severn real esate, Severna Park, Severna Park real estate, Shady Side, Simpsonville, Solomons, Suitland, Sunderland, Temple Hills, Tracy's Landing, University of Maryland, Upper Marlboro, Waldorf, West Friendship, West River, Woodstock. Admiral Heights, Anchorage, Annapolis Cove, Annapolis Overlook, Annapolis Roads, Arden on the Severn, Arundel on the Bay, Atlantis, August Woods, Bahama View, Bay Ridge, Belvoir, Blackwalnut Cove, Bretton Woods, Cape St. Claire, Cherrystone, Chesapeake Harbour, Cranberry Woods, Epping Forest, Fishing Creek Farms, Harness Creek Overlook, Herald Harbour, Heritage Harbour, Hillsmere, Historic Annapolis, Hunt Meadow, Landing at Spa Creek, Mariners Landing, Martins Cove, Murray Hill, Pendennis Mount, Penderbrooke, Pinehurst, Poplar Point, Revell Down, Riva Trace, Saefern, Saltworks on the Severn, Selby Beach, Sherwood Forest, St. Margarets, Sunrise Beach, Tall Timbers, The Overlook, The Downs, Vineyards at Iglehart, Wardour, Windsor Farm, Woodland, Woodlore. Ask Michelle Wylie to help you with Annapolis relocation, Anne Arundel County relocation, homes for sale, and property for sale. I will help you find a home, find a house, find land; just tell me your needs.