When a young Herndon home buyer first hears the term “earnest money deposit,” the words alone pretty much explain the general concept. But I make sure to clarify the details before we begin to put together our offer.
The purpose of the earnest money deposit is to assure the seller that this is a buyer who is serious about completing the sale. If the seller does accept the offer, the earnest money is held in trust until it can be applied to the ultimate sale.
Since this deposit is a considerable sum, I make sure my buyer client fully understands the terms that control how it is handled—including three major happenstances by which earnest money might be forfeited. Each is avoidable if proper care is observed.
It might seem hard-hearted for the seller to refuse to return that deposit, but that’s not really unreasonable. In addition to the hassle of canceling the moving day and re-entering the property in the Herndon listings, there can be a question raised in prospective buyers’ minds about why the first contract failed—a potential problem the seller didn’t deserve.
Before a bid is ever submitted, I do my best to see that my buyers are sure—thoughtfully so—that a property is the one they really want. From that point on, I keep on top of all the ensuing steps, from drawing up the offer all the way through the final closing. I hope you’ll call me whenever you’d like to discuss your own Herndon real estate plans!
Mom. Mother-in-law. Chef's Wife. Navy Chief's Wife. Realtor. Christian. Connector. Empty Nester. Business Woman. Foodie.