August 9, 2011

Michael Petruccelli asks; When you make an offer on a home where does the earnest money go and does it get applied to the price of the home?

Michael Petruccelli says; Your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you.  The amount of earnest money varies. If you buy a HUD home for example, your deposit generally will range from $500 - $2,000.