Earnest money is cash, usually held in an escrow, that shows the seller that the buyer is serious about going through with the transaction. With earnest money, the seller can remove the listing from the market with confidence. Earnest money is often 1% - 3% of the sale price.
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Cash held in escrow as earnest money serves as a sign to the seller that the buyer is committed to completing the purchase. The seller can confidently withdraw their listing from the market after receiving earnest money.
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Earnest money is a deposit to a seller representing a buyer's good faith in purchasing, such as acquiring a new home.
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