Earnest Money

Under what circumstances can I actually lose my earnest money?



How is this different from down payment?



What is the usual amount and how little can I go?

Comments(5)

  • steady2820th June, 2006

    I would like to know the answer to this one as well.

  • pmatheson129th June, 2006

    How little can I go?

    I have seen as little as $1.00 cash.
    A check for $1.00.
    As much as the full downpayment.

    Promissory notes;
    a. Created for the occasion.
    b. Existing Note & Deed of Trust
    c. Personal Note.
    d. Post dated check.

  • Kimtd4th July, 2006

    wsmann: what kind of concessions?

  • jeffkoon5th July, 2006

    Around here you could expect to pay around 1% of the purchase price in earnest money though 1/2% is acceptable as well. Larger earnest money amounts are preferable if you are looking to get a price break.

  • wsmann6th July, 2006

    concessions like price reduction, contingencies on yield, soil testing, inspections etc.

    It seems locally sellers like to price raw land as though it was fully developed or close.

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