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Community Corner

Richfield House Hunt: Know Your Earnest Money Obligations

Richfield House Hunt features five stylish homes.

Buyers need to put money aside for expenses that will arise between making an offer and closing on their dream home. The first expense is earnest money, a good faith effort to show the seller that the offer is not frivolous. Earnest money is often one or two percent of the offering price and usually in the form of a personal check which will be cashed and put into escrow account with the listing agent’s company, where it is held until closing. At closing, it will become part of the down payment.

Additionally, if the buyer balks after all the paperwork is signed by both parties and the contingencies, such as inspections, are removed, that money can be forfeited. However, there are common exceptions such as the home not appraising for the sale amount by the buyer’s lender or because the buyer doesn’t qualify for a loan.

Have no fear, in most cold-feet situations, the earnest money stays with the seller. This helps cover the seller’s costs and for possible lost opportunities that come with keeping the home off the market.  The details of what happens to earnest money is written into the purchase agreement and buyers should be aware of their obligations when they make offers on homes like these:

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House No. 1: 7614 Vincent Ave. S.

Listed by: Home Finders, Inc.

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Price: $173,000 Taxes: $2,789

Description: One story; three bedrooms, one bath and 1,396 finished square feet. This cute remodeled rambler is near shopping, a bus line and freeway access. The garage holds two car, there is a formal dining room, bay window, a backyard deck for the summer and there are two beautiful evergreens in the front yard. This is a short sale and a great opportunity for the right buyer.

House No. 2: 7304 15th Ave. S.

Listed by: Edina Realty

Price: $179,000 Taxes: $2,378

Description: One story; three bedrooms, two baths and 1,471 finished square feet. This stylish home has a lot of extras for its size. The updated kitchen has a center island and the formal dining room includes built-in cabinets. The vaulted ceiling gives it a light and airy look. The hardwood floors on the mail level shine and the two fireplaces will be great next winter. For summer fun, there’s a large backyard with a patio and a beautiful closed-in porch.

House No. 3: 7020 Thomas Ave. S.

Listed by: Re/Max Results

Price: $179,900 Taxes: $2,496

Description: One story; three bedrooms, two baths and 1,470 finished square feet. This home is in an ideal location, near Southdale and The Galleria and the library. This home has been beautifully maintained with three bedrooms on one level. There’s hardwoods under the carpet, room for a garden near the patio in back, a breakfast bar and formal dining room, office space and a family room on the lower level. Move right in or make it your own.

House No. 4: 6538 Sheridan Ave. S.

Listed by: Edina Realty

Price: $220,000 Taxes: $2,844

Description: One story; three bedrooms, two baths and 1,549 finished square feet. This beautiful Richfield rambler has an updated kitchen with maple cabinets and new appliances, re-done hardwoods and lots of new landscaping with a large patio and a fenced yard.  The lower level family room and the main level living room both has brick fireplaces. It’s all updated and ready to more in. This is a beautiful home just a quick walk to Sheridan Park.

House No. 5: 6741 Columbus Ave. S.

Listed by: Real Living Main Street Realty

Price: $149,900 Taxes: $2,361

Description: One story; three bedrooms, one bath and 1,492 finished square feet. This solidly built estate has a lot of cute touches, including a red sink in the kitchen, a big back yard and a screened porch, two brick fireplaces, a full finished basement, a den and central air. There is natural woodwork and hardwood floors in the living room under carpet. This home is less than two blocks from Veteran’s Memorial Park and Legion Lake and only a couple of minutes drive to shopping and highway access.

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