Make your EMD Competitive
An earnest money, or good faith deposit, is a sum of money you put down to demonstrate your seriousness about buying a home. In most cases, earnest money acts as a deposit on the property you're looking to buy. The EMD is typically handed over to a 3rd party company to hold till you get to the closing table where it is applied to your total cash to close.
Show you have money! One way to make your offer stronger when writing on a house is to put your money where your offer is. If you write an EMD that is 5-10% of the sales price, you will give the seller confidence that you aren’t going to walk away due to cold feet.
Another way you can make your offer stronger through your EMD is to offer it to be forfeited should you decide to back out during your inspection period. This gives the seller a peace of mind that you really do want this house and you wont let imperfections cause you to walk. I represent the buyer and that means giving all of my clients options to get the home that really does fit their need(s).
Both placing a stronger EMD and offering it up to be forfeited during the inspection period have a high risk level. You have worked hard for your money and I strongly encourage you to weigh out the risk of not getting the house.
