what is emd

EMD stands for Earnest Money Deposit, which is a deposit made by a buyer to a seller that represents the buyers good faith to make a purchase such as the acquisition of a new home. The EMD is often given to the real estate agent when the purchase agreement is signed, and it is placed into an escrow account until the contract closes. This deposit is then applied to the buyers closing costs, transaction fees, or down payment. The amount of EMD can be negotiated between the buyer and seller, and it is usually a percentage of the purchase price. The EMD is a crucial piece of the homebuying process that will help the buyer reach their real estate goals when used effectively.