The main differences between earnest money and option money are amount, payee, and refundability.
Although negotiated between buyers and sellers, earnest money is typically 1% of the sales price. The earnest money is made payable to a title company (another term negotiated between buyers and sellers) and deposited into an escrow account at the title company. Upon closing on the purchase of a house, the earnest money is applied to the buyers down payment, closing costs and prepaids. Under certain circumstances, the earnest money is refundable to the buyer.
Like earnest money, option money is negotiated between buyers and sellers. But the amount of option money is significantly smaller as it typically runs between $100 to $500. The option money is provided to the seller. Upon closing on the purchase of the house, the option money is typically provided as a credit to the buyer. The option money is non-refundable.
If the buyer terminates the contract during the option / termination period or if the buyer is unable to secure financing during a defined time frame and the seller is notified of such, the earnest money is refunded to the buyer. The option money is not refunded under any circumstance.
All real estate is local. The difference between earnest money and option money outlined above is relevant to the Spring Texas real estate market.
Jill is as professional as they come in the business. My wife and I moved from California after job relocation... read moreJill is as professional as they come in the business. My wife and I moved from California after job relocation and selected Jill after reviewing her website and learning more than we thought about the Houston area.
When we met Jill, she first came across as honest, professional, and caring. She lived up to the expectation. She helped guide us in choosing the best community, SummerWood, for our situation. Jill was never pushy, impatient or unprofessional when we turned down several homes which fit our initial description. Several times we moved the goal line and changed our preferences and each time time Jill asked for clarification, gave us a professional opinion and went to work.
Our home closed before we could arrive in Houston and Jill kept our key and ensured we were catered to until we moved to Houston.
When we thought were were going to have problems with closing before my assignment started, it was Jill who went ahead and researched temporary housing for us (without me asking). She worked with our lender and represented our interests until we could arrive in Houston.
When we did move in, we got a welcome mat at our front door, gift card to a restaurant, and a list of vendors we would need to begin life in Houston.
My wife and I definitely view Jill as the Realtor to work with. She is friendly, intelligent, and she dresses nice too. Too much to list, all around nice lady. Met her husband too and I'm still trying to decide who is nicer. read less