LBI Real Estate Earnest Money Deposit

High Tides Digital Marketing
Jan 19, 2023
2 min read

Earnest Money Deposits in the Long Beach Island NJ Real Estate Market

Long Beach Island Real Estate

An LBI real estate earnest money deposit is simply a "good faith" deposit. Customarically, when a buyer makes an offer for a home on Long Beach Island, they will put down a small deposit, usually around $1,000, to show their offer is serious. This deposit is usually fully refundable if the offer is not accepted and is usually held by the real estate brokerage representing the buyer.

LBI Real Estate Earnest Money Deposit

All buyers in the LBI real estate market should understand that an earnest money deposit is a very common tradition. While such a small sum of money may seem insignificant in a transaction that is usually $1,000,000 or more, the symbolism still has value. An earnest money deposit can show a buyer is serious about a home. When buyers are in a multiple bid situation, they can make their offer stand out by increasing this deposit, which may catch a seller's attention.

Earnest Money Deposits in the Long Beach Island NJ Real Estate Market

There are many deposits involved in buying a home in the LBI real estate market. The earnest money deposit is usually the first and smallest of these. An additional deposit is typically due around 10-15 days from signing a contract and is generally around 5%-10% of the sales price. Knowing the difference between these two deposits can help make the home buying process easier on Long Beach Island. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.