Typically, when your offer is accepted, the seller expects you to pony up a deposit as a sign of good faith. This earnest money is usually around 1% to 2% of the purchase price, but the actual amount can vary.
Aside from knowing how much earnest money you’ll need, it’s also important to find out whether you can get your deposit back if the deal falls through. If you don’t include a clause in the contract stating that you have a set amount of time to retrieve your earnest money, you may forfeit the cash if you decide not to purchase the home.
Source: SmartAsset – Questions First Time Homebuyers Forget to Ask
Photo by Nik MacMillan on Unsplash
