Five ways you can get earnest money back

EARNEST MONEY = “GOOD FAITH” DEPOSIT

get-em-back

No matter how much time you spend on researching and educating yourself about your home purchase, it’s hard to cover every detail. Here are a few tips for avoiding rookie mistakes with your first home purchase. Earnest money is a deposit you pay when you make an offer on a home—it’s a way to show the seller that you mean business. Usually, you can’t get it back, but there are several circumstances that allow you to recover your earnest money.

  1. Appraisal contingency: With an appraisal contingency, you can recover your earnest money if the home is appraised for less than your offer. This gives you a better negotiating position—if the seller doesn’t agree to a lower price, you can get your earnest money back and walk away from the deal.
  2. Major problems with the home: It may be your dream home at the surface level, but an inspection could reveal major, major problems—such as issues with the foundation, or flood damage. In that case, you can get your money back if the seller doesn’t agree to a lower price.
  3. The seller backs out: Obviously if the seller changes their mind about the transaction—maybe they decide not to sell or accept a higher offer—you get your earnest money back.
  4. Your house hasn’t sold: Many buyers can’t afford a new home if they’re still financially responsible for their old one. In this case, you can work a sale contingency into the contract, and get your earnest money back if the home doesn’t sell soon enough.
  5. Financing issues: Though there are some limits on financing contingencies, you can get your money back if you’re unable to get a loan.

NOTE FROM AGENT VAL:

Contracts vary from state to state. Consult your REALTOR® and/or Real Estate Attorney regarding details specific to your contract. REALTORS® cannot offer legal advice.

If you are looking to buy or sell real estate (first home, luxury home, garden home, duplex, condominium, townhouse, investment property, vacation home, etc…), and you are not currently represented by a Texas REALTOR® or Attorney, I would love the opportunity to assist you!

Send a private message and I will help you find the best path to your real estate goals!

logo with metroVal J Aranda, REALTOR® & Certified Home Marketing Specialist

“Coaching Texas Home Buyers and Sellers”

Metro Realty Logo

4007 McCullough Ave, Suite #477
San Antonio, TX 78212 | Call/Text Val: 210-378-5987

The advice and opinions expressed and shared on AgentVal.com are the sole opinions and advice offered by Val J Aranda, Metro Realty. This is not intended to solicit business from consumers under a Buyer/Broker Agreement or Listing Agreement with another Real Estate Firm.
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About AgentVal

I'm not your typical "Sales Person." I consider myself a teacher of Real Estate. I don't just close deals and move onto the next one. I take my time educating buyers and sellers before, during and after each transaction. My job description is more of a community service. I coach home buyers and sellers so they can make confident real estate decisions. I also assist new property investors. Whether or not you've bought a home before, real estate is constantly changing. Don't stress about what you don't know - let me bring my 18 years of experience to the table. I'll provide you with all of the resources you'll need to have a successful closing. I'm a Texas REALTOR® offering around-the-clock service. I want to be your personal resource for Texas Real Estate. If you have general real estate questions or concerns keeping you up at night, ask me! I understand you need your beauty sleep! :-)

Posted on 31 AM00000010 2010, in Bexar County. Bookmark the permalink. Leave a comment.

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