10/22/2026
๐ Real Estate Term: Earnest Money Deposit (EMD)
What is it? When you make an offer on a home, you'll put down a deposit โ called earnest money โ to show the seller you're serious.
Here's what to know:
๐ต Typically 1โ3% of the purchase price
๐ต It's held in an escrow account, not given directly to the seller
๐ต If the sale closes, it goes toward your down payment or closing costs
๐ต If you back out for a reason not covered by a contingency, you may lose it
๐ต If a contingency falls through (inspection, financing, appraisal), you typically get it back
Earnest money protects both buyers and sellers. How much should you offer? That depends on the market and the price range. Let's talk strategy.
๐ 563.210.9781 ยท ๐ป www.fcreiowa.com ยท โ๏ธ [email protected]
Sheila Budelier | REALTORยฎ | First Choice Real Estate