Earnest Money: Earnest is a Virtue and a Deposit  

One would think signing a contract would indicate one’s seriousness to purchase a home.  It definitely does but the seller is looking for more.  By more, I mean cash. 

It is standard for a buyer to place a deposit, called earnest money, on the home after signing the contract.  Normally, this is 1%-2% of the purchase price.  

This money is held in a safe account by a representative of the parties (agent or attorney) or the title company and is applied to the purchase price.