My agent just asked me for an earnest money deposit to go with my prequal letter, I wanted to know is that really needed and what is it exactly? :-*
It’s a non-refundable deposit that is eventually credited toward the sales price of the property. It is so called because it is money that is given in consideration for the right to buy the house. For a contract to become legally binding there has to be consideration on both parts. It is named ‘earnest money’ because it’s consideration to show you are serious about completing the transaction.
AND because ‘serious money’ sounds stupid! 
Yeah Serious money does sound bad!
I do not like earnest money! and have used the same $$ for 200 houses and 2 years now!
earnest money doesn’t always have to be non-refundable. it can be returned under some circumstances.
Since anyone can write just about anything into a Purchase Agreement, the sure earnest money doesn’t have to be non-refundable. Two problems with that. One - why on earth would you make it refundable? The seller then has no recourse if they back out. Which leads to TWO - I would challenge that the contract is ever really enforceable with refundable consideration because then it’s not really consideration at all and then it doesn’t meet the mutual consideration requirement for an enforceable legal contract. But in either case, people do silly things so I’m sure it’s happened before.
Thanks I will offer $250 for an “Earnest Money Deposit” today, I just hope thats enough to show I want it.
Hey Blue Sign a promissory note for the money! It is Almost Christmas!