Showing How Earnest You Are
The expression "putting your money where your mouth is" demonstrates a monetary sincerity to what could be empty words. In today's competitive market where multiple offers are common, sellers want as much assurance as possible that the buyer is sincere and will close on the sale. The seller who accepts a contract expects the buyer to follow through but, in most cases, doesn't know the buyer either personally or by reputation. The earnest money submitted by the buyer with the contract shows their commitment to the terms of the offer. If the amount is relatively small, the seller could be concerned that the buyer may walk away from the contract if they change their mind before closing. The lost time could be injurious to a seller who is trying to meet a deadline. The more earnest money a buyer deposits indicates to the seller a higher level of commitment to the contract. Except for stated contingencies in the sales contract, if the buyer...