Earnest Money is the check that a buyer offers with a contract to show the seller they are serious. It is usually payable to the listing brokerage company, and delivered within three days of a finalized contract.

Amount: Typically 1% of price

Some buyers offer more to make their offer look stronger. Many just offer $1,000.

It doesn't cost anything to offer more, assuming the sale makes it to closing, because the buyer is credited the full amount of the earnest money at closing.

However: If the buyer does not make it to closing, except for specific contingencies listed in the contract, the buyer could lose their earnest money.

The contract may specify the return of earnest money for certain contingencies.

• Financing
• Inspection
• Others

The buyer can lose the earnest money by ignoring the timeline outlined in the contract, or if they have a change of heart afer signing a contract.