In this video, Joseph Spivey helps answer one of the most common questions we hear in the real estate industry. Earnest money is a deposit a buyer gives to a seller as a show of good faith. The deposit shows that the buyer is serious about buying the home and will hold up to their end of the purchase agreement. Earnest money is usually held in an escrow or trust account until closing where the funds are used towards the purchase price of the home. It is not to be confused with a down payment or closing costs.