Earnest money shows you’re serious
Typically when an offer to purchase a house is made, you, as the buyer, will also pay an 'earnest money' deposit.  This deposit indicates to the seller that you’re serious about the offer to purchase and that you have the financial resources to do so. 

The amount of earnest money depsoit varies based on the purchase price and local market 'traditions.'  In Savannah it is customary that the Earnest Money deposit equal approximately 1% of the offering price.  However, for various reasons this could indeed be more....or less. As your Realtor and Buyers Agent, I’ll help you determine the appropriate amount to pay as an earnest money deposit.

The sales contract, also known as a Purchase and Sale Agreement,  will dictate who holds the earnest money.  Usually the seller’s real estate agent will deposit the earnest money in a trust or escrow account until closing.   At closing, the earnest money is applied to the purchase price.

In the event the sale doesn’t close, the sales agreement generally spells out the conditions under which you would forfeit the earnest money.  Generally if the seller meets all the terms of the contract, the seller will keep the earnest money.  If the seller does not meet the terms of the contract, you, as the buyer, may receive a total or partial refund of the earnest money.