What is earnest money?

Earnest money is a good-faith deposit delivered after an offer is accepted, according to the amount, method, and deadline written in the purchase agreement. It shows the seller you are serious about the transaction.

The amount is negotiable and varies by market and price point. In a competitive lake community, a strong earnest money deposit can make your offer stand out.

The funds are held in a designated trust or escrow account, not personally by Melissa, and are generally credited toward your funds due at closing. In most cases, it is not an extra cost, it is part of your down payment or closing costs.

Your purchase agreement establishes the earnest-money amount, delivery deadline, contingencies, and cancellation rights. Understanding those terms matters, because they define what happens to the deposit in different scenarios.

Melissa will help you track these requirements and deadlines. Questions about your legal rights under a contract should be directed to a qualified real estate attorney.