Скачать или смотреть What is EMD? Why is it Important for Home Buyers & Sellers in a real estate transaction?

What is earnest money deposit (EMD) and why is it important for home buyers and sellers to understand?

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Jon Tripp, CEO & Team Leader of The Domus Group at eXp Realty explains EMD. If you have any questions after watching the video, call Jon at 703-552-5259 or schedule time to talk at https://calendly.com/thedomusgroup.

https://thedomusgroup.com
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When you opened your first savings or checking account, you had to put down some money - probably $25 to fund your account.

In a real estate transaction, this is called EMD - or earnest money deposit.

This is one element of the contract between a buyer and seller. Those funds bind a buyer’s interest in a property and gives the seller a reason to take their home off the market.

Couple things to consider (for buyers):

1) the EMD should be a large enough amount to demonstrate your strong interest in the property
2) if you decide to walk away without cause (default), the EMD will likely be forfeited to the seller as damages
3) EMD is a credit to you and is counted in the down payment total you will bring to closing
4) how much should you put down for EMD when writing an offer? Consider 1% as the minimum. The more you put, the more skin you have in the game

And for sellers:

1) if a buyer writes an offer with low EMD, counter with a higher amount
2) don’t consider EMD funds to automatically be yours if the buyer gets out of a contract. There are provisions allowing a buyer to void a contract. If they don’t have cause, then your Realtor®, the buyer’s agent and the entity holding the funds will hash out the distribution of those funds
3) view EMD funds as an insurance policy for you taking your home off the market while the buyer is arranging funds to purchase your home

The terms around how much the EMD will be and when it is due will be outlined in the contract. Be sure you’re aware of how many days you have to get the funds submitted to the escrow or title company - and make sure there are funds are in the account you’ve written the check or wired from.

And if your offer doesn’t get accepted, no monies will exchange hands - so no need to stress over a check getting cashed unnecessarily.

Here’s a jingle I contrived to help you get it:

In real estate, an EMD's paid,
To show the buyer's commitment made,
It's a deposit, a pledge to represent,
An insurance policy, a vital segment.

For sellers, it's a sign of good,
To protect their interests, as they should,
The funds may/may not be theirs if the deal falls through,
Agents will distribute, a process they'll pursue.

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When you work with a professional, you want to know that they are qualified in the area of expertise they claim.

Take a look at this video I did on Realtors: what they are and aren't.

00:00 Introduction: What is EMD?
00:25 Why Understanding EMD Is Important for Buyers
00:59 Why Understanding EMD Is Important for Sellers
02:00 Poem to Summarize