Dawn Isenhower Sibcy Cline Realtors

On another real-estate site, this question was posted. Earnest Money is not legally required in Ohio, but, if I am advising a client on an offer that is not accompanied by Earnest Money, I question the financial strength of the buyer. If the buyer has no cash flow, then the entire burden of the transaction is on the seller (who in most cases is already paying the real estate commission).The seller will be asked to pay closing costs, any and all repairs that are required by inspections, etc. That buyer may not be able to perform in the end because their financial position may change from paycheck to paycheck. Definitely not fun for a seller to pack and move out, only to find that the buyer has spent the down-payment money, or made a major credit purchase before closing since they have no other source of cash.

Earnest Money demonstrates that you have the cash flow that it takes to get the transaction closed. If my buyer clients appear stressed by the fact that they might have to come up with earnest money and pay for a home inspection, they are probably not ready to face the financial commitment that owning a home will require.

Dawn Isenhower
Realtor

Sibcy Cline Realtors
Milford Office
disenhower@sibcycline.com
office: 513-248-0800
cell: 513-236-1254
fax: 513-878-2211
www.dawnisenhower.com