Our real estate agents know that many sellers go into the process with immediate plans for the money they'll make in their transaction. They may wish to use the proceeds for a new home, so timing is crucial. Or they might have something else in mind that's no less important to them.

Whatever the case may be, there's no time to waste. Jackson homes for sale tend to sell for a higher amount the faster they get on and off the market. There are many things sellers and their agents can do to ensure a property moves quickly.

But there's one factor that's difficult to control: Buyer behavior.

When your house is on the market, you want to meet with serious buyers as soon as possible. Some of the methods used by real estate agents, such as open houses, are especially good for this. But even if a buyer says all the right things at first, there's still a chance they may back out before the end.

Wouldn't it be great if there was a way to be sure your buyer will see things through? While there's no 100% certain method, there is one traditional approach that can be very effective.

Let's talk about earnest money.

Earnest Money Helps Separate Buyers from Window Shoppers

When a buyer sticks around long enough to make an offer on a home, it's easy to assume the tough part is behind you. But many issues could come up between that moment and closing day. You may be within days of signing on the dotted line, only for a would-be buyer to back out.

In short, they need some "skin in the game." This is the concept of earnest money.

An earnest money deposit is made when a real estate purchase contract is submitted. Unlike the down payment, which is mainly there to impress the lender, earnest money is for your benefit as the seller.

Earnest Money Amounts Can Vary

You've probably heard that a good down payment is about 20%, and maybe even more. But there are no such rules, even informally, when it comes to earnest money. Earnest money can vary from $100 to the whole purchase price. It's ultimately up to you to decide how much earnest money is enough.

When you're thinking about it, consult your real estate agent. Consider the overall market condition, how desirable your home is, and how many other offers you're passing up to follow up with this one. Also bear in mind the buyer's financing may dictate how much cash they have on hand.

Earnest Money Isn't Always a Done Deal

You will receive the earnest money if the buyer terminates the sales agreement. If the transaction goes through, on the other hand, the earnest money is returned to the buyer.

But this isn't always the case. The sales contract may have certain stipulations that allow the buyer to walk away "free and clear." You'll have to agree to these for them to be enforceable. For example, a seller may be allowed to exit the deal if an inspection turns up the presence of mold or other issues.

Requiring earnest money is a terrific way to protect your interests. An experienced real estate agent can do the rest. Contact us to find out more or get started.