09/25/2026
🍂 Happy Friday! 🍁
Welcome to the very first Term of the Week! Every Friday, I’ll be breaking down a real estate term to help you feel more confident, informed, and prepared on your homeownership journey.
✨ This week’s term: Earnest Money ✨
Think of earnest money as a good-faith deposit that shows a seller you’re serious about purchasing their home. It’s typically submitted after your offer is accepted and you enter into a purchase agreement, with the exact timing outlined in your contract.
When does earnest money come up?
Once your offer is accepted, you’ll generally need to submit your earnest money deposit within the timeframe specified in your purchase agreement. This is often a few days after acceptance, so it’s important to plan ahead!
🍂 How can you prepare?
🍁 Start setting aside funds early so you’re not scrambling when the time comes.
🍁 Ask your real estate agent what amount is customary in your market.
🍁 Make sure you understand the contract deadlines and the conditions under which your deposit may be refundable.
🍁 Keep your earnest money funds accessible and ready to go when your offer is accepted.
Remember: Earnest money is generally credited toward your closing costs or down payment at closing. However, if you back out of the deal outside of the protections in your contract, you could risk losing it.
As we step into this cozy fall season, let’s make learning about real estate a little less overwhelming, one term at a time. 🍂✨
💬 Have questions about earnest money or the homebuying process? Drop them in the comments!