Is earnest money required when buying a house, and what does earnest money even mean?
So, you’re making an offer and your agent tells you that you need to put up some cash for earnest money, but what the heck does that mean? Well, earnest money is money that the buyer is willing to put towards the offer and it shows the seller how serious they are about purchasing the sellers home. Now, unlike the due diligence fee, earnest money is not given directly to the seller upon offer acceptance. It is given to the closing attorney or the listing agent’s firm to hold in their trust account until closing.
Watch the video above for more detail!