Earnest Money : A deposit made by a purchaser of real estate to evidence good faith.
Simply stated…An amount of money offered with the purchase agreement to show the sellers that you’re serious about purchasing their home. A homeowner will want to know this before agreeing to take their home off the market. Typically in Albuquerque, earnest money can range from $1,000-$1500 for less than $250,000 and $3,000-$5000–up to $500,000. This is always negotioable, but needs to be reasonable to the seller. Earnest money is generally held in escrow with a title company in Albuquerque and is credited to the buyer at closing.
For brief definitions of other terms, visit my Real Estate Glossary.