What is EMD & Why Does It Matter in Real Estate?

Описание: If you’ve ever heard the term "Earnest Money Deposit" (EMD) and wondered what it means, here’s the breakdown:

✅ What is EMD?
EMD is a small deposit (often 1-3% of the purchase price) a Buyer puts down when making an offer on a property. It shows the Seller you are serious and committed to buying.

✅ Why is it Important?
Shows Good Faith: It tells the Seller you’re not just window-shopping—you’re ready to move forward.
Secures Your Offer: Sellers are more likely to accept an offer with a solid EMD because it reduces their risk of wasting time.
Applied to Closing Costs: At closing, your EMD is credited toward your purchase price or costs.

✅ What if the Deal Falls Through?

If you cancel within the inspection period, your EMD is refunded.
If you back out outside of allowed conditions, you may lose your EMD to the Seller.

👉 Pro Tip for Buyers: Always understand the inspection period and contract terms so you don’t risk losing your EMD.

In short, EMD is your "skin in the game", it builds trust and moves your deal toward the finish line! 🏁

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