What is Earnest Money?

Earnest money is a deposit made by a purchaser of real estate to evidence good faith.

Simply stated, earnest money is an amount of money offered with the purchase agreement to show the sellers that you’re serious about purchasing their home. A homeowner will want to know this before agreeing to take their home off the market. Typically in Albuquerque, earnest money can range from $1,000-$1500 for less than $250,000 and $3,000-$5000–up to $500,000. This is always negotioable, but needs to be reasonable to the seller. Earnest money is generally held in escrow with a title company in Albuquerque and is credited to the buyer at closing.

If you have any questions about earnest money, please leave them in the comments below. And if you’ve got questions about buying or selling a home in metro Albuquerque, be sure to contact me today!