REAL ESTATE O: We recently submitted an offer on a home and our agent asked us to include Earnest Money with the offer. We are not sure if our Dick Phelps offer will be accepted and if it is, that money will be tied up until closing 6-8 weeks from now. Is Earnest Money required with an offer? A simple answer is; no. Earnest Money is not required. The A: purpose of Earnest Money though is for several reasons. Primarily it shows that you are earnest about purchasing the home. In response to your comment regarding the offer not even being accepted yet, your check for Earnest Money is not cashed until you have an accepted offer. If you fail to reach an agreement on price and conditions, the check is not cashed, but rather returned to you. If you have an accepted offer, the check will then be deposited in a Federally regulated Trust account and you will see at closing that you are credited for that amount. Another reason for Earnest money is that if all contingencies are removed and the Buyer arbitrarily decides to default on the contract, the Seller will receive the Earnest Money as compensation. In the greater majority of transactions, the Ernest Money is credited to the Buyer at closing or returned to the Buyer due to contingencies not being satisfied. When in a competitive offer situation, a larger Earnest Money may make your offer more attractive. In new construction purchases, the builder may ask for a substantial amount of Earnest Money and ask that it be declared non-refundable prior to construction or changes. If you are considering selling your home in the Spring, please consider this to be the time to begin the process. Century For Questions Contact: Dick Phelps 218-766-5263 erphelps@century21dickinson.com DICKINSON REALTORS REAL ESTATE O: We recently submitted an offer on a home and our agent asked us to include Earnest Money with the offer. We are not sure if our Dick Phelps offer will be accepted and if it is, that money will be tied up until closing 6-8 weeks from now. Is Earnest Money required with an offer? A simple answer is; no. Earnest Money is not required. The A: purpose of Earnest Money though is for several reasons. Primarily it shows that you are earnest about purchasing the home. In response to your comment regarding the offer not even being accepted yet, your check for Earnest Money is not cashed until you have an accepted offer. If you fail to reach an agreement on price and conditions, the check is not cashed, but rather returned to you. If you have an accepted offer, the check will then be deposited in a Federally regulated Trust account and you will see at closing that you are credited for that amount. Another reason for Earnest money is that if all contingencies are removed and the Buyer arbitrarily decides to default on the contract, the Seller will receive the Earnest Money as compensation. In the greater majority of transactions, the Ernest Money is credited to the Buyer at closing or returned to the Buyer due to contingencies not being satisfied. When in a competitive offer situation, a larger Earnest Money may make your offer more attractive. In new construction purchases, the builder may ask for a substantial amount of Earnest Money and ask that it be declared non-refundable prior to construction or changes. If you are considering selling your home in the Spring, please consider this to be the time to begin the process. Century For Questions Contact: Dick Phelps 218-766-5263 erphelps@century21dickinson.com DICKINSON REALTORS