Powertalk: Earnest Money That Closes

In this conversation, Mike discusses the importance of earnest money in real estate transactions. They argue that the amount of earnest money should be enough to cause anxiety and fear of loss for the buyer, as it serves as a deterrent to backing out of the deal. Mike suggests that the amount should be significant, such as 20% of the downpayment, and should be held by a trusted attorney like Luder Lark. They emphasize the role of the agent as a trusted advisor, using their expertise to guide clients through the negotiation process and ensure the transaction closes. Mike encourages agents to push for higher earnest money deposits to increase the likelihood of a successful closing.