In a quickly changing market this can also affect your offer price and how quickly you must present an offer. Taking everything into consideration, determine the maximum you would pay for the house and keep it to yourself. There are various strategies to use when making an offer, but many negotiating professionals recommend making a fair offer, with some room to come up if necessary. When deciding offer price, listen to the advice from the real estate agent. Also remember that if another buyer simultaneously puts in a higher offer you could lose the house.
Earnest money is given by the potential purchaser with a purchase contract.
It is meant to show you are sincere about purchasing the property. If your offer is accepted and you purchase the home, the money will show up as a credit on your sales contract at closing. If your offer is not accepted, you are entitled to get your earnest money back. In many cases, if you come to agreement then break the contract you will forfeit your earnest money. The amount you put up for earnest money will depend upon many factors local conditions, your cash flow and the agent s advice among others.