Earnest money given to a seller from a buyer is one way to build trust between them and to give the seller confidence that the sale process has indeed begun.
Asking for earnest money when selling your Colorado Springs house is a way to begin a solid transaction and builds trust between buyer and seller. In many listings, you will notice that the seller asks for earnest money from interested buyers.
That means the seller requires a small percentage of money to be placed in escrow or other account to show good faith. It helps to keep buyers from making verbal promises that they don’t intend to keep. They may look at your house and decide that they may want it, but then go down the street to view 3 more and change their minds. While they have every right to do so, it doesn’t do much for those that need to sell their homes.
When you have an interested buyer for your Colorado Springs house, you may stop showing the house to others or even take it off the market completely, trusting that the person you spoke to after you showed them your house was sincere in the desire to choose your house. If they change their minds, you are out not only money, but precious time.
The earnest money is turned over to the seller upon completing the contract. Sometimes this is done by reducing the down payment and applying the earnest money to it. For example, if the earnest money given to you accounted for $700, you would reduce the down payment required by $700 and apply the earnest money previously given to the down payment.
Some buyers put down earnest money to keep other buyers from grabbing a good deal out from under them. By giving you a small deposit, the buyer tells you that he or she is quite serious about purchasing your home and is willing to put down cash to prove it. If they back out and leave you hanging you may be able to keep the money, depending on the laws in your particular state.
Earnest money is almost always deposited with a third party for safe keeping. It is ultimately going to benefit the seller of the house eventually, but until the contract is signed it must be kept in a neutral location. Asking for money in earnest is common with those who sell their own homes where there is no licensed or official real estate professional involved. It represents the same as a gentleman’s handshake or word of honor that the buyer is indeed interested in the purchase of your home.
Sell Your House for Cash in Colorado Springs
Once you have made efforts to make your home look perfect, do not forget to contact a reliable real estate investor in Colorado Springs such as Bonnie Buys Houses Fast. We buy houses for cash in Colorado Springs! If you are interested in selling your house, contact us by filling our online form.