Columbia SC Real Estate and Homes for Sale

Alright, you are at the point of executing a Contract of Sale on the Columbia SC Real Estate home you want to purchase.  You know what you want to pay, you are already Pre Approved to purchase this Columbia SC Real Estate home.  You and your agent have done your due diligence, and barring unforeseen circumstances, such as repairs, termites, liens, etc…you want to purchase this home.

You agent then asks you, “How much earnest money do you want to put down?”

Wikipedia defines earnest money as:

An earnest payment (sometimes called earnest money or simply earnest, or alternatively a good-faith deposit) is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase. When a buyer makes an offer to buy residential real estate, he/she generally signs a contract and pays a sum acceptable to the seller by way of earnest money.

Pretty much, you are showing monetarily a good faith promise that you will close on this house, barring any unforseen circumstances as listed above.

Earnest money deposits vary greatly within the Columbia SC Real Estate market, however, there is a trend.  Under about $150,000, a $500 earnest money deposit seems to be acceptable.  Of course, this is always part of the negotiations.

Typically, one of the Columbia SC Real Estate brokerages holds that money in a trust account.  Most will not accept cash, and most require that the check be made out to XYZ Real Estate Company.  These trust accounts are used solely to hold earnest money.  The money can not be accessed unless the house closes, or both parties agree for the earnest money to be dispersed. 

At closing, the purchaser is credited for the earnest money.  You get it back, unless you are found in default of the contract. 

There are several contingencies in the standard Columbia SC Real Estate contract about Earnest money.  If you have any questions about earnest money, or anything else to do with Columbia South Carolina Real Estate, please contact me and I will gladly help you!

Also see Columbia SC Real Estate Closing Costs