Earnest Money Explained: What Buyers Need to know in Citrus County

Earnest Money Explained: What Buyers Need to Know in Citrus County

Earnest money is important when you fall in love with a home, you show your commitment with earnest money —a good-faith gesture that tells the seller, “I’m serious.”

This earnest money deposit, is usually 1–3% of the purchase price, is held in escrow until closing. It protects both sides: buyers show they’re genuine, and sellers can feel confident taking their home off the market. That money is paid by the buyer and held at the title company they are like a bank of sorts for your transaction.

If the sale closes, that earnest money goes toward your down payment or closing costs. If something in your contract allows you to back out—like inspection results or financing—the deposit is typically refunded. But walk away for no reason, and you could lose it. So be careful and watch your timelines spelled out in your purchase agreement.

Earnest money is small compared to the total price, yet it carries weight. It builds trust, strengthens your offer, and shows you’re ready for that next chapter. In Citrus County’s competitive market, a strong earnest money deposit can make your offer stand out from other offers the Seller may have received. It shows sellers you’re financially prepared and committed, which can make a difference in multiple-Offer situations. So put your best foot forward when it comes to earnest money.

For more details, visit ERA American Suncoast Realty or reach out to learn how earnest money fits into your buying journey.

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