In buying or selling a home, buyers and sellers might be confused because of all
the different new terminology used. Sellers don’t remember the terminologies and
need refreshment and a first time buyer might need a dictionary to help them.
What is Earnest Money?
When a buyer offers to purchase a home, the offer usually includes Earnest
Earnest Money is to demonstrates to the seller that you are serious and
interested in buying the home.
Many agents would say that “Earnest Money isone
percent of the offer price of the home”,I
would say that it is negotiable and depends on how interested you are in the
house. I had a buyer who offered 25% earnest money to show how interested he is
in the property. In Texas, earnest money is usually paid to the title company
within 2 days of the executed contract. (Executed contract is when buyer and
seller have the contract signed by both parties)
Buyers are always wondering what will happen to the money in case they decided
to buy or not to buy.
In case, buyers decided to continue with the contract and buy the house, the
earnest money will be used as paid amount towards the price of the house (as it
is part of the downpayment) and you will be able to see it on the HUD statement
In case, buyers decided to terminate the contract, it will depend on the terms
of the contract. For example, when you make the offer, you request an option
period of 10 days (A negotiable period of time that can be 7 to 10 days of the
execution date). If you terminate the contract in day 5, you can get your money
back. If you terminate the contract in day 11, you will lose your money.
It is very important to have aRealtorhelping
you in the process to explain the details in the contract and do the negotiation
part for you and make your real estate transaction as smooth as possible.
This is the market activity in Missouri City in 2011 as of 6/14/2011
Homes for Sale
Foreclosures or Short Sales
% of Foreclosure of Homes for Sale
New Construction Homes
$40,000 - $1,800,000
Houses SOLD in 2011
$32,500 - $1,200,000
Average Days on Market
Average Price per Sq. Ft.
* This information is about all the Homes in Missouri City TX, the analysis can vary from one neighborhood to another. For more information about the market analysis in your neighborhood, please feel free to contact me any time for FREE consultation.