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Overheard my agent on the phone saying 'the earnest money is just a deposit, not a penalty'
It clicked that it's meant to show you're serious, not to trap you if you need to back out for a valid reason in the contract. Made me read the contingencies section much more carefully. Anyone have a story where their earnest money was actually at risk?
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troymorgan7d ago
My first home purchase had a $5,000 earnest money check. I got nervous about the inspection report on the old roof, but my agent reminded me the inspection contingency was my clear way out. The money only becomes a penalty if you walk away for a reason not covered in the contract, like just changing your mind. I've seen friends lose theirs by waiving all contingencies to make a "stronger offer" in a bidding war. That's when you're truly on the hook. Reading every line of that contract is the only real protection you have.
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