The Term “Nonrefundable Deposit” Explained

The Term “Nonrefundable Deposit” Explained

Anything is possible, right?

Even being asked to put down a deposit on a house before you buy it.

Not a down payment, a nonrefundable deposit.

If you’ve ever experienced buying a home in a competitive market, there’s a chance you could be asked to put down a deposit to convince the sellers to accept your offer.  If you’ve ever experienced buying a home under construction you know the builder will likely ask for a deposit before accepting your offer.

Since it is “nonrefundable”, this will show the seller that you are serious about buying their property. Not only that, but that you have the available funds to do so.

Typically the nonrefundable deposit is applied to your statement at closing.  However, if you back out before closing the seller gets to keep the money. 

Your real estate agent will explain the risks when you’re confronted with this situation.  Don’t have a real estate agent?  I’d love to represent you in your next real estate transaction!  Call me, Jill Bell, at 479.799.3023!

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