5 Ways You Can Get Earnest Money Back

Dated: 09/06/2016

Views: 270

Five ways you can get earnest money back

No matter how much time you spend on researching and educating yourself about your home purchase, it’s hard to cover every detail. Here are a few tips for avoiding rookie mistakes with your first home purchase. Earnest money is a deposit you pay when you make an offer on a home—it’s a way to show the seller that you mean business. Usually you can’t get it back, but there are several circumstances that allow you to recover your earnest money.

  1. Appraisal contingency: With an appraisal contingency, you can recover your earnest money if the home is appraised for less than your offer. This gives you a better negotiating position—if the seller doesn’t agree to a lower price, you can get your earnest money back and walk away from the deal.

  2. Major problems with the home: It may be your dream home at the surface level, but an inspection could reveal major, major problems—such as issues with the foundation, or flood damage. In that case, you can get your money back if the seller doesn’t agree to a lower price.

  3. The seller backs out: Obviously, if the seller changes their mind about the transaction—maybe they decide not to sell, or accept a higher offer—you get your earnest money back.

  4. Your house hasn’t sold: Many buyers can’t afford a new home if they’re still financially responsible for their old one. In this case, you can work a sale contingency into the contract, and get your earnest money back if the home doesn’t sell soon enough.

  5. Financing issues: Though there are some limits on financing contingencies, you can get your money back if you’re unable to get a loan.Image title

Blog author image

Ruby Arias

Whether buying or selling a home, you want someone on your side that knows the local market and puts your needs first. Call me today at 623-398-5575 to schedule a no-hassle consultation.....

Want to Advertise on this Site?

Latest Blog Posts

What If I Wait Until Next Year To Buy A Home

What If I Wait Until Next Year to Buy a Home?We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained

Read More

Is My Home Overpriced

The real estate market dictates the value of a home. A home is worth exactly what a buyer is willing to pay for it at a specific time. What that means is if a home is worth $1,000,000 in today’s

Read More

Apr 10 2018 11399 1

What is Private Mortgage Insurance (PMI)?When it comes to buying a home, whether it is your first time or your fifth, it is always important to know all the facts. With the large number of mortgage

Read More

Why You Should Hire A Realtor When Buying A New Construction Home

One of the first decisions that must be made in the home buying process is whether to buy an existing home or build a new home.  In today's market a shortage of inventory is

Read More