Tip #1 - Earnest Money

Please note: If represented by an agent, Realtor, or attorney, please disregard any information below and turn to your hired professional for advice and guidance. If represented, this is not an attempt to solicit business or provide advice for your specific situation, contract, etc..

When buyers are purchasing property in WA state, an Earnest Money Deposit is typically required. Although this is not a legal obligation to deposit earnest money, a Listing Agent would likely share with a seller that it’s not a wise decision to accept an offer without the deposit provided by buyers (to escrow).

In most cases, it’s safest and best to make sure that your Earnest Money is liquid, and ready to move quickly if you happen to find the home you love. When you decide to make an offer, sometimes this can come up quickly. If earnest money is in an online account, retirement accounts, over seas, etc., this can slow down your process significantly. In competitive situations and quick markets, this can sometimes tip the scale and be viewed as a negative. Just as importantly, it adds additional stress on you as the buyer, throwing a tasks your way when you’re in a busy part of the process as it is.

Also, if financing your purchase, be sure that you’re sending Earnest Money from an account that your lender is aware of. If sending it from an account your lender/Loan Officer was unaware of, from a family member’s account, etc., this can create issues.

All agents know what Earnest Money is, but there are sometimes safer ways to approach this and prepare for the time when you’ll deposit it to escrow. Escrow, a neutral party within the transaction, will hold the funds until closing. At closing, your Earnest Money does become part of your down payment amount as well.

I’ll stop here for now, but reach out if you have additional questions. (Please turn to your agent for guidance, if you’re already represented.)