If you’re buying your first home, whether it’s a ranch in Basalt or a condo in Snowmass, you’re probably unfamiliar with earnest money. So what is it, and why do you need it?
What is Earnest Money?
Earnest money, which is also sometimes called a “good faith” deposit, is money you put forward when you’re serious about buying a home. It shows the seller you’re serious because you’re willing to put your money where your mouth is—and it shows that you’re willing to risk your own money so that the seller will consider your offer.
Who Gets the Earnest Money Deposit?
Typically, you’ll give your Aspen Realtor® a cashier’s check or money order. He or she will put the money in escrow, where it’ll be held until you close on the home.
The money will be applied to your down payment at closing unless you and your Realtor specify otherwise.
How Much is an Earnest Money Deposit?
Your earnest money deposit amount will vary. Typically, it’s between 1 percent and 3 percent of the home’s purchase price.
Are You Buying a Home in Aspen or the Surrounding Communities?
We’d love to help you find your dream home here. Call us at 970-429-8275 or contact us online to let us know what you’re looking for so we can start searching right away.
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