The deposit amount is different from one purchase to the next. Many factors can sway the amount of the deposit. In seller's markets, earnest money deposits are often larger than in buyer's markets. This is because properties tend to have more inquiries in seller's markets. Thus, it takes a little more to convince the seller to accept a certain offer.

In a steady or buyer's market, the amount of Earnest Money deposit is a bit more flexible, and it is best to consult with your Columbus Ohio Real Estate agent for advice based on the offer price and presence or absence of multiple offers Once you have reached an agreement with the seller, the earnest money deposit is placed into an escrow account where it will stay until closing. At this point, the terms of the Purchase Agrteement control the money. Usually when the deal closes, the deposit is refunded or may be applied to your down payment and closing costs.

What happens if the deal falls through for reason? This is where sellers and buyers often disagree. Sellers sometimes feel that buyers should forfeit the earnest money deposit and they should receive the money. On the other hand, buyers contend that it was their money in the first place and the earnest money.  BOTTOM LINE: The disposition of the earnest money deposit is determined by the terms of the purchase contract and whether contingencies have been satisfied.

In some states there is a statute of limitations on which the escrow can hold the money without receiving a release authorization from the buyers. After this time period has expired, the law requires, in most cases, that the deposit be returned to the buyer.

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Article's Author

Jeannie Andrews
RE/MAX Achievers
Lewis Center, OH

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