Earnest deposits or earnest money is money you put down before closing to show that you are serious about purchasing. When a buyer and seller agree to a purchase contract, the seller typically takes the home off the market while everything moves toward closing. If the deal falls through, the seller may have to list the home again and start the process over, which can cost time and money. Earnest money helps protect the seller so that if you back out of the contract for a reason not allowed, then they can keep the money. If you were to back out for a reason listed in your contract (like a failed inspection or financing falling through), you usually get the money back. Earnest money is typically around 1%-3% of the homes purchase price and held in a escrow account. If everything goes well, the earnest deposit will be applied to the down payment or closing costs.

An escrow account is a secure, third-party account that holds money and important documents during the home buying process. It is used to protect both the buyer and seller while the sale is being finalized.

A cashier’s check is a secure form of payment that is guaranteed by your bank. Instead of pulling money from your personal checking account, you pay the bank first, and then they issue the check using their own funds. This makes it a safer and more a reliable option. Cashier's checks are used for large transactions like home closing costs or down payments. Sellers, title companies, and lenders sometimes require a cashier’s check because it can’t bounce like a personal check might.

A buyers agent represents the homebuyers and the seller/listing agent represents the home seller. The buyers agent is responsible for helping you find a home in your budget, scheduling showings/tours, guides the buyer through the process, etc. The seller's agent responsibility is to help you set a listing price, markets your home, coordinates open houses and photoshoots, negotiates on the sellers behalf, etc.

A contingency is a condition in a real estate contract that must be met for the deal to move forward. It protects either the buyer or the seller by allowing them to cancel or renegotiate the agreement if something important doesn’t go as planned. Some common contingencies in a real estate contract include things like a home inspection contingency, which allows the buyer to back out or renegotiate if the inspection reveals major issues. A mortgage contingency protects the buyer in case they are unable to secure a mortgage loan. There is also an appraisal contingency, which allows the buyer to walk away if the home’s appraised value comes in lower than the agreed purchase price. Lastly, a home sale contingency gives the buyer time to sell their current home before finalizing the purchase of the new one.