Earnest Money

[Steve Jeffries]

I have heard of people making an offer on a property and submitting a large sum of money as earnest money to show how serious they are. Sometimes I hear of the amount being the same as the offer. I want to attempt this strategy on my next purchase, as I may have competition, but my earnest money will be smaller then an the offer. Example: Asking price: $50,000 Offer: $35,000 Up front earnest $: $10,000 Question 1: in this scenario do you think the $10,000 earnest check have any kind of wow factor? Question 2: Will the earnest money go towards my down payment and closing cost, or Will it be purchase price -10,000+ down payment + closing cost? Question 3: do you suggest a better way of adding a wow factor to an offer?