When you make an offer on a home, you will usually be asked to include earnest money. Earnest money is a good faith deposit that shows the seller you are serious about purchasing their home. Once a seller accepts your offer, they take the property off the market while the transaction moves toward closing. This means the seller is committing time and opportunity to you as the buyer.
If the deal falls through, the seller may need to relist the home and start the process all over again. This can result in lost time and potential financial impact. Earnest money helps protect the seller if the buyer backs out without an approved reason.
Earnest money is typically around 1 to 3 percent of the purchase price and is held in an escrow account until closing. The exact amount depends on what is customary in your local market. In Greenville and the Upstate, the amount can vary depending on the price range, competition, and contract terms.
If the transaction moves forward as planned, the earnest money is applied to the buyer’s down payment or closing costs. It is not an additional fee but simply money paid upfront that is credited back at closing.
Earnest money gives both parties peace of mind. The seller knows the buyer is committed, and the buyer shows they are ready to move forward with confidence.
Final Thoughts
Understanding earnest money is an important part of the home buying process, especially in a competitive market.
If you are buying or selling a home in Greenville, Simpsonville, Five Forks, or anywhere in the Upstate, I would love to help guide you through your next steps. I am Monica Barnett, a local real estate agent with Coldwell Banker Caine. Let’s make your move simple, informed, and stress free.
