The earnest money deposit is an important part of the real estate transaction, and here’s what you need to know about it.

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Today I’ll cover the topic of earnest money deposits by answering a few of the most common questions regarding them.

First, what is an earnest money deposit?

An earnest money deposit is a good-faith deposit that a buyer puts down on a home to show the seller that they’re a serious, committed buyer.

How much do you put down in an earnest money deposit?

This amount is usually negotiated between the buyer and seller, so it can vary. As a general rule of thumb, though, it will usually be between 1% and 2% of the purchase price. The deposit itself goes toward the down payment of the home, and it’s generally held by the title company that’s performing the closing, although it can also be held by the brokerage.

The date that the deposit is delivered is also negotiated between the buyer and seller. In some cases, it will accompany the offer, but the standard real estate contract requires it to be due within three days of the executed contract, or the time that both the buyer and seller sign the contract.

“The earnest money deposit will usually be between 1% and 2% of the purchase price.”

Can you get your earnest money deposit back if something goes wrong?

It depends on the situation and how your contract is written. There will likely be a couple contingencies with the purchase: the inspection contingency and the financing contingency. If something goes wrong during the home inspection or you find something you don’t like, you have the right to take your full earnest money deposit back as long as you do so within the time period originally agreed upon.

It’s important that you work with an agent who can walk you through all the contingencies and let you know where you’re at in the process so you know that your earnest money deposit is never at risk.

If you have any questions about this topic or you have any other real estate needs, don’t hesitate to give me a call or send me an email. I’d be happy to help you.

Looking to purchase a condo in the Melbourne, Florida area? Don’t forget to ask these crucial questions first before making an offer:

• How’s your credit score?

  Like any big-ticket purchase, let alone a house, you want to make sure financials are in order when investing in condos in Melbourne, FL. For starters, make sure your credit score is above 700 to get the best mortgage rates possible. Moreover, your mortgage and other home expenses should ideally not exceed 28% of your income. Likewise, make sure your total budget includes important but oft-forgotten expenses like closing costs.

• How well-funded is the condo association?

  Condo associations make sure that the building is properly operated and maintained, but they can only do so if they have enough funds. Ask for a copy of the association’s budget and financial statements to assess its health.

  When the association is well funded, incidental expenses such as emergency repairs are taken from the budget—not charged to residents.

• Who manages the property?

  Some condos are self-managed, meaning the association and its officers handle the day-to-day upkeep of the building. Oftentimes, however, management is sub-contracted to outside property managers. If so, check out the credentials of the company that runs the condo. Do they specialize in condo building management? Do they have a good track record? Remember: poor management can drive down the value of any property.

• What is the building like?

  Some condos are midrise and have only a few floors; this means fewer residents per floor, but also often translates to higher price tags. Other buildings are skyscraper tall, which maximizes lot size for greater savings. That said, this means more neighbors and longer elevator rides.

• How much do you need to pay for insurance?

  All homes need to be insured, but there are certain unique factors that determine a condo’s insurance premium. For instance, mortgage lenders often require a flood insurance rider for beachside properties. Older buildings that don’t meet wind mitigation guidelines might be more expensive to insure. Before purchasing, make sure to go over this detail with your real estate agent.

• Have you read the condo rules?

  Some condos allow pets; others do not. Others allow extensive renovation work; others won’t even let you take down a wall. Ask for a copy of the condo rules and peruse it carefully. By law, you are given 15 days to review the documents if buying a brand new unit, and three days when buying an existing one. If you aren’t happy with any of the stipulations, look elsewhere.

• Are you happy with the amenities?

  Many condos are built to support certain lifestyles, with its amenities following suit. You’ll be paying for these amenities through association dues, so make sure they fit your needs. At the very least, look for features such as swimming pools, function halls, gyms, and the like.

  With great views, access to the beach, and proximity to all of life’s daily conveniences, a condo unit in Melbourne, FL is a wise investment. Just make sure to review each option carefully so you end up with the best possible property that suits your needs.

Need help looking for a condo in the area? The Garrett Bell Team is here to help you fulfill all of your real estate goals in this picture-perfect paradise. Call (321) 537-6697 or e-mail [mail_to email=”[email protected]”][email protected][/mail_to], and let our team assist you in finding your dream condo.

Watch rocket launches from the observation deck of Port Canaveral’s Exploration Tower

Who said you had to break the bank to have a good time? The residents of Brevard County, FL, will attest to the many enjoyable things the county offers that cost little to no money.

Here’s a weekend adventure guide tailor made for modest budgets:

1. Go skating

   Skating is a pastime beloved by parents and kids alike. In Brevard County, there are at least three skating venues to choose from: Galaxy Skateway and Funtown in Melbourne, and Space Coast IcePlex in Rockledge. All offer skating lessons for a minimal fee. Check out their special rates during specific hours.

2. Explore nature

   Leave your smartphones and tablets behind. Explore the majesty of Turkey Creek Sanctuary Park instead. The 133-acre sanctuary is home to many plants and animals, and entrance is absolutely free. Highlights include a 4,000-foot-long boardwalk, a gazebo, picnic areas, and a jogging trail. There are also nine biking trails, and the educational Margaret Hames Nature Center.

3. Unleash your inner astronaut

   If your kids are fascinated by astronomy, they’ll love the Space Walk of Fame Museum. Here you’ll find personal effects donated by astronauts themselves, as well as educational exhibits detailing the history of America’s space program. To inspire the country’s future space explorers, the museum also holds weekend workshops that help kids explore a career in science, technology, engineering, and math (STEM).

4. Play an interesting round of golf

   Golf-N-Gator promises just what its name says. The two mini golf courses weave through tropical landscaping, complete with streams, waterfalls, and a giant pond with live alligators. You can also hold the smaller gators and feed the adult ones. The place is home to various birds, lizards, snakes, and a tortoise.

5. Enjoy a day at the beach

   Unwinding at Paradise Beach & Park is one of the simple joys of living in Brevard County. There, you can swim, fish, go boating, and hop on a Jet Ski. The 12.39-acre beach also has volleyball courts, picnic amenities, and dune crossovers, giving you more opportunities to have fun under the sun.

6. Experience Port Canaveral like never before

   Want to see something unforgettable? Head over to the state-of-the-art Exploration Tower, where you can watch rocket launches from the seventh-floor observation deck. Each floor also holds interactive exhibits that explores the port’s rich history. In the evening, the place is transformed into a nightlife hotspot, with live DJs and bands playing at the nearby beach.

7. Watch a live performance

   Feed your soul and your senses at King Center for the Performing Arts. The venue can seat some 2,000 guests, and holds musical performances throughout the year. Check out the gallery, too, which features a different exhibit each month.

For a fun but budget-friendly time in Brevard County, all you need is good company and a little knowledge of the area. For the latest information on this booming real estate market and houses for sale in Brevard County Florida, call 321.537.6697 or email [mail_to email=”[email protected]”][email protected][/mail_to].

Look forward to a lucrative career in the fields of science, tech, engineering, and math

Melbourne, FL has a little bit of everything – and something for everyone. It’s one of the most promising real estate markets in the state, as it offers plenty of opportunities for work and play. If you’re looking to purchase property in Florida, here’s why Melbourne should be on top of your list:

1. Ideal location

   As Melbourne, FL lies along the Indian River Lagoon, it is paradise for boaters and anglers alike. There are also many beach parks in the barrier island not far from the city center. As for accessibility, the city has an international airport right next to major interstates.

2. Tech jobs abound

   Cape Canaveral, John F. Kennedy Space Center, and General Electric all call Melbourne, FL home, so there are plenty of job opportunities for people in the fields of science, technology, engineering, and math. And with STEM jobs fetching an average wage of $87,000 per year, you can look forward to a fulfilling and lucrative career here.

3. Lower cost of living

   First off, there is no state income and sales tax in Florida, giving you more bang for your hard-earned buck. Housing prices are also lower at $163,000 versus the national average of $222,000. Likewise, the cost of living is about 11.7% lower than the US average.

4. Year-round sunshine

   Melbourne, FL gets about 234 days of sunshine each year and zero inches of snow. In short, you can spend two-thirds of the year chilling on the beach, exploring the great outdoors, and tending to your garden. In fact, Melbourne, FL scored an impressive 81/100 on Sperling’s comfort index.

5. Live close to nature

   Need to get away from the bustle of modern living? Head over to Sebastian Inlet State Park to reconnect with nature. Here you can go scuba diving, kayak through mangroves, go saltwater fishing, and hike or bike through scenic trails, among other outdoor activities.

6. Great schools

   When you live in Melbourne, FL you can be sure your kids are getting the best education possible. GreatSchools.org gave a glowing 10/10 rating to four of the city’s elementary schools: Longleaf, Quest, Suntree, and Sherwood. The area is also home to respected higher education institutions like Florida Institute of Technology, Everest University, and Brevard Community College.

7. Thriving culture scene

   While the city’s claim to fame is its booming tech industry, the Eau Gallie Arts District on Main Street proves the city has an eye for fine arts, too. As the area’s culture hub, the district is home to several historic structures as well as museums like Foosaner Art Museum and Rossetter House Museum and Gardens.

8. Plenty of community parks

   The city may not be particularly big, but it certainly doesn’t scrimp on public green spaces. Melbourne, FL boasts nine public parks where you and the family can play sports, go on a picnic, walk the dogs, and take in the beauty of nature.

Fun, affordable, high-tech, and close to nature — what more can you ask for in a city? The good news is that there are still Melbourne homes for sale that fit your needs. Browse the website for more information, or get in touch with local expert Garrett Bell at 321.537.6697 or [mail_to email=”[email protected]”][email protected][/mail_to].