I Want to Explain Earnest Money to My Buyers in Citrus County

Earnest money shows sellers buyers are serious about purchasing a home

By Diana Dodd, REALTOR®
ERA American Suncoast Realty

Earnest money in Citrus County is one of the things that surprises many buyers.

I often get asked, what exactly is earnest money?

Earnest money is simply a deposit that shows the seller you are serious about buying the home.

Let me give you a simple example.

Let’s say you are buying a home for $250,000.

You may put down $1,000 to $3,000 as earnest money, depending on the situation.

This money is not an extra cost. Instead, it goes toward your purchase.

At closing, your earnest money is credited back to you and applied to your closing costs or down payment.

So you are not losing that money. You are simply putting it forward earlier in the process.

However, buyers in Citrus County often worry about what happens if something goes wrong.

This is where contingencies come in.

For example, if you have an inspection contingency, financing contingency, or appraisal contingency, your earnest money is typically protected if those conditions are not met.

Because of this, it is important to structure the offer correctly from the beginning.

I always walk my buyers through this so they understand how earnest money in Citrus County works and how it is protected.

You can also learn more about the home buying process here:
https://www.consumerfinance.gov/owning-a-home/

If you are thinking about buying in Citrus County, understanding earnest money is an important part of the process. It is one more way to strengthen your offer while still protecting your interests.

Diana Dodd
REALTOR®
ERA American Suncoast Realty
731-363-5833
diana.dodd@eracitrus.com