Nikki Rodriguez, Realtor

Earnest money acts like a handshake with financial weight - it shows the seller that the buyer is serious. It’s a deposit (usually 1–3% of the purchase price) held in escrow to signal serious intent. If the sale closes, it goes toward the down payment; if the buyer backs out without a valid contingency, it may be forfeited.

In a competitive market, making the right offer can set you apart. Beyond price, consider strengthening your offer with a larger earnest money deposit, flexible closing dates, or fewer contingencies. Working closely with your agent helps you craft a strategy that balances protecting your interests while showing sellers you’re serious. Sometimes, a well-structured offer wins over the highest bid.