Typically when an offer to purchase a house is made, you, as the buyer, will also pay an “earnest money” deposit. This deposit shows the seller that you’re serious about the offer to purchase the property.
The amount of earnest money deposit varies based on the type of property being purchased and local market conditions. As your Panama City Beach Real Estate Professionals, Performance Realty will help you determine the appropriate amount to pay as an earnest money deposit.
The sales contract will dictate who holds the earnest money. Usually the seller’s real estate agent will deposit the earnest money in a trust or escrow account until closing. At closing, the earnest money is applied to the purchase price.
In the event the sale doesn’t close, the sales agreement determines the conditions to which what happens to the earnest money.
