Sellers: Don’t Let Earnest Money Leave You High and Dry!
Did you know that Dayton standard purchase contract might be quietly stacking the deck against you? Let’s talk about earnest money—that “good faith” deposit buyers offer when they sign your contract. It’s meant to protect YOU, the seller—but here’s the catch: it’s often so buyer-friendly, you could be left holding the bag if a deal falls apart.
Here’s what you need to know:
The Problem: Dayton’s purchase contract lets buyers reclaim their earnest money for almost any reason—like failing to qualify for a loan on the day of closing. Meanwhile, you’ve lost weeks of market time, and all you get is a measly $500 or $1,000 deposit? That’s pocket lint when you’re stuck paying utilities, another month’s mortgage, and dealing with wear and tear on your property!
The Reality: Low earnest money ($500-$1,000) falls far short of offsetting your costs or the risk of a deal falling through. Buyers can tie up your property, then walk away, leaving you to foot the bill.
The Fix: Demand nonrefundable earnest money at 1% of the purchase price (e.g., $2,000 on a $200,000 home). If buyers flake out or need an extra 30 days to close, tack on another 1% to keep your home off the market. It’s your house, your rules—make them show real commitment!
Don’t let buyers play games with your time and money. Next time you list, negotiate earnest money that works for you. Have questions? Give me a call at 937-474-0235
Happy Selling,
Dakota Shannon
