Great post at Rain City Guide by Ardell on earnest money, one of the few direct out-of-pocket expenses buyers make prior to Closing.

The buyer usually writes a check for the Earnest Money deposit at the same time that they sign the offer and they hand it to their Buyer Agent.
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If you know you really want the house when you make the offer, and you have no problems at all throughout the transaction, the Earnest Money just slides like butter from your hand and back into your hand. Whether it actually goes into your hand at the end or is paid against your costs varies from transaction to transaction. But it still simply comes back to you like a boomerang.

The only time you should be worried about handing over an Earnest Money check, is if you are not sure you want the house at the time you make the offer.

In our market, the check is made payable to the Buyer’s Agent’s company, where it is held in escrow until Closing.  More on this later …

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