Understanding Earnest Money: What It Is and How It Protects You as a Buyer
When you're buying a home in Central Florida, one of the first financial commitments you'll make is your earnest money deposit—and understanding how it works can give you a lot more confidence during the process.
So, what exactly is it?
Earnest money is a good-faith deposit you put down when making an offer. It shows the seller you’re serious, and it temporarily takes the home “off the market” while you complete inspections, finalize financing, and move toward closing.
Why it matters:
✅ It strengthens your offer
Especially in competitive areas like Kissimmee, Davenport, and Clermont, sellers look for buyers who are committed.
✅ It protects you during the process
If you cancel for a valid reason—like a bad inspection, appraisal issues, or financing problems—you usually get your earnest money back.
✅ It becomes part of your final costs
Think of it as money you’re paying early. It’s applied toward your closing costs or down payment at closing.
How much should you expect to pay?
In Central Florida, earnest money typically ranges from 1%–3% of the purchase price. Higher deposits can help you win in multiple-offer situations.
Good news:
Your Realtor (that’s me!) will help you structure your deposit to protect your interests while keeping your offer competitive.
📲 Nick Carroll – Florida Concierge Team | Real Broker
Helping buyers and sellers across Central Florida with concierge-level real estate service.
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