Buying your first home? Don’t risk losing your deposit!
In this episode of Two-Minute Tuesday, I’m breaking down what an Earnest Money Deposit is, why it’s such a big deal in the home buying process, and how first-time buyers like Sarah have LOST thousands by not understanding the rules. 😬
Whether you’re just starting your real estate journey or deep into making offers, this is one video you can’t afford to skip.
What You’ll Learn:
What an Earnest Money Deposit actually is
How it protects both the buyer and seller
What happens to your money if the deal falls apart
A real-world example of how a buyer lost $5,000
Don’t get blindsided—protect your deposit and make smarter offers.
Timestamps:
0:00 – Purpose of the Video
0:28 – What Is an Earnest Money Deposit?
0:42 – Why Earnest Money Matters in Real Estate
1:18 – How the Deposit Is Handled (Escrow)
1:41 – What Happens to Your Deposit After Closing
1:46 – When You Might Lose Your Earnest Money
2:02 – Real-Life Example: How Sarah Lost Her Deposit
2:45 – Importance of Contract Contingencies
3:10 – Why Earnest Money Strengthens Your Offer
3:33 – Final Tips for Handling Earnest Money
4:26 – How to Contact the Agent and Ask Questions
Let’s chat: Alex Schult CA DRE License # 02236174 KW Spectrum Properties 📲 Text: 949-726-2601 📧 Email: aschult@kw.com
👍 Like this video if you found it helpful
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#EarnestMoneyDeposit #HomeBuyerTips #HomeBuyingProcess #RealEstateMistakes
🎥 More videos you’ll find helpful:
The Best & Worst States for Affordable Housing in 2025 (Full Breakdown)
https://www.youtube.com/watch?v=jHy2wAiGHYw
How Does Escrow Work? What is Escrow?
https://www.youtube.com/watch?v=EOPvR9F2DlY
DISCLAIMER: This video content is intended for informational, educational, and entertainment purposes only. Neither Living in California nor Alex Schult is a registered financial advisor, attorney, or tax professional. While we have taken reasonable steps to ensure the accuracy of the information presented in this video, we cannot guarantee that it is free from errors or omissions. Any reliance you place on the information provided is strictly at your own risk. Additionally, your use of the Living in California YouTube channel and any communication through this platform, including but not limited to YouTube comments, emails, or messages, does not establish a formal business relationship with Alex Schult or Living in California. For specific advice related to your real estate, financial, or legal needs, we recommend consulting with a licensed professional in the relevant field.
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Earnest Money Deposit Explained: She Lost $5,000 Backing Out of the Deal