Buyer Education
Why buyers should understand earnest money deposits before making an offer
Why This Matters Locally
In the Philadelphia suburbs, earnest money expectations can vary by price point and market conditions. Buyers should know how much is customary, who holds the funds, and what happens if the deal does not close.
What To Review
- Typical earnest money amounts
- Who holds the deposit
- When the deposit is due
- How it applies at settlement
- What happens if the buyer withdraws
- What happens if the seller defaults
Common Mistake To Avoid
A common mistake is thinking earnest money is extra cost. It is usually credited back at settlement. Another mistake is not understanding when it may be at risk.
Simple Next Step
Ask your Realtor to explain earnest money clearly before writing your first offer.
Looking for more Pennsylvania real estate guidance? Browse the full Buyer and Seller Education Library.
Frequently Asked Questions
Is earnest money refundable?
It depends on the contract terms and contingencies.
How much earnest money is typical?
It varies by market and price. Your Realtor can explain local norms.
Who holds the earnest money?
Usually the listing broker or a title company holds it in escrow.
Before making an offer, understand how earnest money works and what protections apply.
More Buyer Education
- Why buyers in King of Prussia should get pre-approved before touring homesLearn why King of Prussia buyers should get pre-approved before touring homes.
- Why buyers in Wayne PA should understand total monthly payment before making an offerLearn why Wayne PA buyers should understand total monthly payment before making an offer.
- Why buyers should understand appraisal gaps before competingLearn why buyers should understand appraisal gaps before competing for a home.
- Why buyers should review closing costs earlyLearn why buyers should review closing costs early before buying a home in Pennsylvania.
- Why buyers should use local MLS data instead of only national real estate websitesLearn why buyers should use local MLS data instead of relying only on national real estate websites.
- Why buyers should understand the home inspection process before buyingLearn why buyers should understand the home inspection process before buying in the Philadelphia suburbs.