By Kim Buish

HOUSTON, TX. – Earnest Money is a vital part of the home buying process because it shows the seller that you are committed to buying their Houston Home and this also will help you to fund the down payment on the home as well.

Earnest money is necessary because without an earnest money deposit you could technically make as many offers on Houston Homes that you want and this would effectively take those homes off the market until you were able to decide which home you ended up liking the best.

More Earnest Money Indicates a Higher Level of Interest

Did you know that the more earnest money you put down on a home indicates that you have a high level of interest in buying it and are committed to the contract?

When a seller receives significant earnest money they feel secure and confident that the sale of their home will close but how much money should you use as earnest money?

It’s not uncommon for many people to put down earnest money that’s up to 5 percent of the homes purchase price while in other areas it could be a specific dollar amount up to $10,000 depending on the price of the home but in the end it really all depends on what both the seller and buyer can agree is the right amount.

Earnest Money and Contingencies

We all know that every homebuyer has contingencies and one thing you could do to show the seller you are serious about their Houston Home is put down more earnest money after the home has gone through the contingency period, passed the inspections, and all contingencies have been met.

Once you put down earnest money the title company or Real Estate broker will hold that deposit but you should check the credentials of the individual who holds those funds and verify that they will in fact be in escrow BEFORE handing them over because if something does go wrong with the real estate transaction you might not be able to get those funds back.

Buy a Houston Texas Home

To get started with buying a Houston Texas Home contact me, Kim Buish, Realtor® with Red Door Realty & Associates by contacting me at (713) 819-1642 or CLICK HERE to connect with me online.