Any seller wants to know you’re serious about purchasing their home. A buyer’s earnest money shows sincere conviction to the transaction. Specify how much earnest money is to be deposited and how it is to be handled at close of escrow.
Honesty is just as important as being earnest. The form of earnest money and where it will be deposited should be addressed and outlined with how the total purchase price is to be paid. Is it by cash only? What type of loan? How much is the loan amount? How much is the down payment? Paint a clear picture to avoid any doubt and build trust with the seller.
Earnest money always belongs to the buyer to be used as the buyer wishes. Only if a buyer breaches their contract will their earnest money be in jeopardy.