Putting Your Money On The Line

The Georgia real estate contracts are very specific as it relates to earnest money so avoid the stress by discussing the rules and timelines prior to submitting your offer.

Earnest money, by definition, is a good faith deposit paid by the buyer when purchasing a home. It is usually held by one of the real estate brokerages or the closing attorney involved in the transaction. It shows the seller that the buyer is serious about moving forward. I am often asked ‘how much earnest money is required’? While the exact amount is a negotiated item, here are some points for consideration.

First, this is a seller’s market so forget a small deposit like $500. For homes priced under $150k, a buyer may initially offer $1,000. The amount of earnest money usually goes up in relation to the price of the home. Some sellers request 1% of the transaction amount for any offer to be seriously considered.

Certainly, in multiple offer situations, the buyer would want to increase their earnest money deposit to make their offer stand out. Finally, new home communities determine their earnest money so ask the question prior to writing an offer.