What is earnest money? The actual definition is money paid by the buyer to confirm a contract. Or the tried and true put your money where your mouth is. Think of it as placing a monetary hold on the home of your dreams. In Las Vegas, the amount can vary between a few thousand dollars and tens of thousands depending on the purchase price.
Where does the earnest money go?
Generally speaking, it goes toward the buyers closing costs. However, if you are using a VA loan and the seller is paying your closings costs it could be refunded to you.
What happens to the earnest money if the buyer backs out?
If the buyer backs out for a valid reason during the established contingency periods in the contract then more than likely the earnest money will be returned to the buyer. However, if the buyer fails to meet the contingency deadlines or simply changes their mind, they will likely forfeit the earnest money to the seller.
To wire or not to wire, that is the question.
Wire fraud has been a hot topic recently. Our local association has issued a wire fraud notification disclosure. In which, it states for the buyer or seller to independently confirm that emailed wiring instructions were indeed sent by the appropriate party. Verification is one key ingredient to keeping your funds safe and out of the hands of criminals. Another way is to NEVER send personal banking information or other important personal information via email.
Last but not least, HIRE A PROFESSIONAL! I walk through every step of the process with you to take the guesswork out of buying a home. https://thereallasvegas.com/seller-disclosures-2/