How Much is The Earnest Money or Binder Deposit?

Planning to buy a home in Jacksonville? If so, you might be wondering how much you can expect to pay for the earnest money deposit, also known as the binder deposit.

Earnest money deposits are an amount of money that you put into an escrow account to show the home seller you’re serious about purchasing their property. Once the deal goes through, the funds are applied toward your down payment and closing costs.

Understanding how much you can expect to pay for the earnest money deposit can better prepare you for the process and help you create an accurate budget. In this post, our real estate professionals at Your Home Sold Guaranteed Realty - Phil Aitken Home Team will answer several questions related to earnest money deposits.

Is the Earnest Money Deposit Necessary to Bind the Contract?

Earnest money deposits aren’t legally required in most cases, though this could depend on your location. However, they are standard practice in the industry.

Even though earnest money deposits aren’t technically required, they might be necessary to secure a home in a highly competitive market. When there are multiple qualified buyers, your earnest money deposit can be the difference that separates you from the competition.

Is the Earnest Money Deposit the Same as a Binder Deposit?

Yes, the terms “earnest money deposit” and the “binder deposit” refer to the same thing.

Who Holds the Earnest Money Deposit?

The earnest money deposit is typically held by a neutral third party. This could include:

• Title company
• Escrow service
• Bank
• Real estate attorney
• Listing agent’s real estate brokerage

Who Keeps the Earnest Money Deposit if the Buyer’s Financing Falls Through?

In most cases, you can get your earnest money deposit back if the deal falls through. This might be the case if the home inspection or appraisal turns up unexpected issues with the home, your deal with the lender falls through, or you’re unable to sell your previous home.

However, if you back out of the deal for no reason, the home seller may be able to keep your deposit.

Before you pay the earnest money deposit, you’ll work with your realtor to negotiate a contract with the seller and their agent. This contract will specify the exact scenarios that allow you to get your earnest money deposit back. Your realtor will make sure the terms of the contract protect your interests.

Buy a Home Confidently With Our Team’s Buyer Guarantees

Find your perfect home in Jacksonville with Your Home Sold Guaranteed Realty - Phil Aitken Home Team. Our team of highly skilled realtors has a proven track record in the Jacksonville, Florida area. We have received numerous five-star reviews from satisfied buyers who have successfully acquired their dream homes at competitive prices.

Our clients value our unwavering dedication to providing exceptional customer service, strong negotiation skills, and exclusive buyer guarantees. 

One such guarantee is our Buy it Back Guarantee, which offers you a risk-free insurance policy when purchasing a new home. If you determine that the home doesn’t meet your expectations within a specified period, you can return it to us through this program. We will then sell it for you at no additional cost.

For more information about our guarantees or to learn how our team can assist you, please call (904) 544-5252. You can also complete the form on this page to receive detailed information. We look forward to helping you find your dream home in Jacksonville.