what is earnest money 
in real estate earnest money is effectively a deposit to buy a home usually it ranges between 1 10 of the home s sale price while earnest money doesn t obligate a buyer to purchase a home it does require the seller to take the property off of the market during the appraisal process earnest money is deposited to represent good faith in purchasing the home who keeps earnest money if a deal falls through earnest money gets returned if something goes awry during the appraisal that was predetermined in the contract this could include an appraisal price that is lower than the sale price or if there is a significant flaw with the house importantly though earnest money may not be returned if the flaw was not predetermined in the contract or if the buyer decides not to purchase the house during an agreed upon time period 