If you’re dealing withe the right sellers, then they’re not going to ask for an earnest money deposit in most cases. By the “right” sellers, I’m talking about MOTIVATED sellers, the ones that NEED to sell their house.
The instances where I’ve seen sellers ask for earnest money is usually either when the sellers are of a more sophisticated nature (usually higher priced houses), or when they consult with their attorney, and the attorney advises them to ask for Earnest Money.
in most of the 50 United States, and Earnest money deposit is NOT required on a Real Estate Purchase and Sale Agreement. The promise to buy is the consideration that’s required to make the contract enforceable. So do you know what I did? I completely removed the Earnest Money line item. thats right. I deleted it. Its not even on my contract. The seller doesn’t see it, and therefore they don’t ask for it. Brilliant!!
In the event you get one of these sellers that insists on an Earnest Money Deposit, and you want to remain RISK FREE, there are a few things that you can do.