Why advertising matters

No matter the size of your business, good and thoughtful promotion will always help you grow awareness about your brand, get in front of more serious prospective clients, and ultimately boost your revenue. Advertising has been shown to be worth the investment, and we’re taking a deeper dive into why it really matters and what you can do to spread the word about your business.

• It creates brand awareness. • It provides credibility. • It helps you reach potential clients.

It drives lead generation.

It produces more continuous business.

It improves your digital presence.

It encourages customer engagement.

It keeps your consumers up to date.

It leads to repeat business.

The bottom line? Advertising really works. It’s a key component to building your brand, growing your earnings, and maintaining a successful real estate business. Our marketing solutions can help you get lots more eyes on your business with targeted online advertising.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

What is earnest money and why is it important?

by Erik J. Martin

ey say having “skin in the game” is important when you are serious about purchasing a home. Typically, this involves making a pledge of sorts, in the form of cash. But your cash pledge can come in two forms: a down payment and earnest money.

Earnest money is a gesture of good faith in the form of funds that are put down before closing on a home to demonstrate to the seller your intent on buying the property. While earnest money is considered a deposit, it’s not the same as your down payment on a home for sale.

“Earnest money represents the funds used to lock up the home, while the down payment is the difference between the purchase price of the house and the amount buyers are mortgaging,” says Peter McCarthy, head of mortgage for PNC Bank.

Realtor Daniel Brewer, senior vice president of Compass in Washington DC, says your earnest money deposit matters a great deal.

“It can be used to show financial security and strong desire for the home,” he says.

“In a competitive situation, a higher earnest money deposit can set a buyer apart from competitors.”

Often, an earnest money deposit equates to 1% to 2% of the purchase price. ese funds are paid usually by a personal or certified check, or a wire transfer, to an escrow or trust account owned by the real estate brokerage, title company or legal firm involved. e money is kept in that specific account until closing, after which the funds are applied toward your down payment and closing costs.

“Say the buyer is purchasing a home for $300,000 and the earnest money agreed to is 2%. at means they would make an earnest money deposit, held in the broker’s escrow account, of $6,000. Meanwhile, assume the buyer agrees to make a down payment of 20%; that means they will finance the remaining 80%. In this case, their down payment would be $60,000.”

To safeguard both the seller and the buyer during a real estate transaction, earnest money comes with a set of contingencies that are typically listed within the purchase agreement/contract. When you make an offer on a home and the seller accepts, commonly the sale is finalized only when these contingencies are met, subject to state laws and requirements. Contingencies could include things like having a home inspection done, getting an appraisal and being approved for mortgage financing.

“Among other reasons, earnest money is typically refundable if the seller terminates the home sale without a valid reason,” continues

McCarthy. “Conversely, earnest money can be forfeited if the buyer ignores contract timelines and/or contingencies. For instance, a buyer can lose their earnest money if they do not complete the purchase of the home within the timeline that was outlined in the homebuying contract.”

Usually, buyers can get their earnest money back if they are unable to obtain a loan, if they are legally unable to purchase the property or if the seller defaults on the agreement, according to Boyd Rudy, associate broker with MiReloTeam Keller Williams Realty Living in Brighton, Michigan.

“In some cases, the buyer may even be able to get the earnest money refunded if they change their mind within a certain timeframe. is is negotiable and can depend on the terms of the agreement,” Rudy says. Work closely with your real estate agent and/or attorney before committing to make an earnest money deposit. e funds should be substantial enough to indicate that you are a serious buyer but be prepared to possibly forfeit the money if you don’t live up to the terms of your agreement.

“It is essential to have a written agreement outlining the terms of the deposit and any contingencies that would allow for a refund,” recommends Mike Qiu, a home flipper and real estate agent.