What is an Earnest Money Deposit? (Good Faith Deposit) Listen as Bob Kutschbach explains!

hi I’m Bob Kutschbach the owner and broker of Carlton Realty and today we’re going to talk about earnest money deposits good faith deposits well you see in the state of Ohio there is absolutely no requirement for an earnest money deposit to make a valid contract so contracts don’t have to have earnest money or good faith deposits however I advise our clients that if you don’t put up an earnest money deposit many sellers won’t take your offer seriously the amount of the deposit is typically up to the buyer
and in many of the markets in Ohio it’s not a huge deal it’s not a deal breaker as long as the buyer puts up some amount of earnest money deposit and in many markets $500 may be the most normal amount of earnest money deposit but again remember it’s not required for a valid contract we’ve recently been in a market that’s very competitive with multiple offers being received by a seller so distinguishing your offer over other people’s offer is very important and there’s lots of strategies some buyers are risking avoiding a home
inspection which I don’t recommend other buyers are waiving the appraisal or stating they’ll pay X dollars $10,000 over the appraised value that again is risky but another strategy you can employ is to offer a higher earnest money deposit remember if the contract doesn’t go through if you’re not satisfied with the home inspection or you can’t get your financing you will get your deposit back now if you walk away from the contract for no good
reason well then the seller is entitled to that
deposit so earnest money deposits not required for a valid contract but often times sellers look at them to determine the validity of the offer and sometimes a larger earnest money deposit can really make your stand out amongst competing offers if you’d like more advice as to negotiating a contract or how an earnest money deposit works or all of the
reasons how you can void a contract these are called contingencies or
conditions in a contract consult one of our agents thank you for listening for
more information visit us online at CarletonRealty.com or call our
office at (614)891-0000

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