BRING YOUR CHECKBOOK!

            When you make an offer on a house, you will sign the paperwork that outlines the terms of your offer.  At the same time, you will make out a deposit or “earnest money” check, which indicates your serious intention to buy the house.  If you back out after the contingencies are removed, the sellers may get to keep your “earnest” money to make up for any losses they have suffered.

            Buyers usually want to put down as little earnest money as possible.  However, there are some significant reasons to consider making your deposit substantial.  First, if your offer is not quite what the sellers wanted, a large earnest money check makes it more difficult for them to just say “no”.  In a situation where there are multiple offers on the same house, a large check sends a signal to the seller that you are a serious buyer and gives you an advantage over the competition. 

            For solid advice on selling or buying real estate, consult Jim Powers at Prudential Bob Yost.

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