Part of the KashHomeBuyers Real Estate Glossary
Earnest money is a deposit — typically 1-3% of the purchase price — that a buyer provides when making an offer on a home. It's held in an escrow account by the title company until closing, at which point it's applied toward the purchase price or closing costs. Earnest money protects the seller: if the buyer backs out without a valid contingency reason, the seller typically keeps the earnest money as compensation. In a KashHomeBuyers transaction, we provide a reasonable earnest money deposit when we submit our purchase agreement, demonstrating our commitment to close. Since our purchase has no financing or inspection contingencies, our earnest money deposit carries more weight — there are very few legitimate reasons for us to cancel after contract execution.
When you sell to KashHomeBuyers, understanding Earnest Money Deposit (EMD) helps you evaluate our offer and know exactly what to expect at closing. We explain every aspect of our offer calculation — including how Earnest affects your net proceeds — with full transparency and no pressure.
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