Earnest money
There's a lot that has to be taken into consideration when asking for earnest money, not just how much you want.
Transcript
Hey, what's up? This is Tim Clarke, your trusted real estate advisor in the Raleigh-Durham Triangle Market, and this is your free helpful tip and trick from Tim. It is important for a seller to fully understand the dynamics of earnest money and what it actually means to a seller. So in North Carolina residential real estate purchases, the earnest money deposit is the only compensation or liquidated damages available to sellers if buyers default on their obligation to purchase.
So in light of this, a very low large amount may be desirable, but market conditions and limitations on buyer finances must be considered. The realistic financial capacity of a buyer as well as the occurrence of a buyer's market or whether it's a seller's market will also have a significant impact on the amount of earnest money and/or due diligence sellers can realistically demand or expect. So as a seller, you are carefully to evaluate the amount of the earnest money deposit and the risks you are taking when electing to do business with that buyer. This is Tim Clarke and this is your free helpful tip.
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