MOBILE, Ala. (WKRG) — In this Take 5, we’re talking about earnest money with EXIT Realty Lyon. It can be a controversial topic.
Sue and Jimmy Lyon break it down for us.
“Earnest money is an amount of money a buyer will put down towards a transaction as a notion of good faith that they will proceed to close,” Sue Lyon explains.
But earnest money is not a requirement for a contract. So why do people put down earnest money?
“Most all contracts have earnest money,” Jimmy Lyon says. “Like Sue said, you don’t have to have earnest money, but the sellers think the buyers should put money up, so it’s always been done in most cases.”
But what happens if you put down earnest money and then get an unsatisfactory home inspection? Sue tells us what she and Jimmy would do to get that money back.
“We would go to a release of sale, we would ask for the buyers to get their money back,” she says. “If they don’t agree to it, then a little negotiation comes in.”
Sue and Jimmy take an extra step to protect a seller’s earnest money.
“We put in the contract that earnest money is due upon the acceptance of the home inspect,” Jimmy says.
One of the benefits of working with EXIT Realty Lyon is that Sue and Jimmy bring their deep knowledge and extensive experience with topics like earnest money to their client’s real estate transactions.