What and how much is the Earnest Money Deposit?
Your Earnest Money Deposit is the amount of collateral you’re putting up to show the Seller how serious you are about your offer. It also is intended to cover the Seller’s economic loss and additional marketing expenses in the event you should breach your contract. The traditional deposit made with an offer in Anchorage is $1,000. If you are making an offer on new construction, the builder may ask for 2-3% of the purchase price as Earnest Money and make it non-refundable. The purchase contract provides for specific regulation as to how your deposit is handled. Make certain you have a clear understanding of the situations where your Earnest Money may be retained, and under what circumstances you are entitled to have it returned.
