While you won’t be expected to dish out the full sale price when you buy a home, you will have to put up a certain amount of money to seal the deal, and an earnest money deposit is part of it. Basically, this deposit represents a promise to the sellers that you’re serious about buying and that you’ve got the financial means to make your mortgage payments in order to finalize the deal.

Let’s go over what an earnest deposit is and a few things you should know about it before you decide to make a home purchase.

1. They’re Not the Same as Down Payments

Many buyers may confuse earnest money deposits with down payments, but they’re not the same. While an earnest money deposit is the money that buyers offer sellers to prove that their intentions of buying the home are serious, a down payment is the amount of money that buyers need to come up with in order for the lender to approve the mortgage to finance the home.

Basically, an earnest money deposit is a commitment to the seller, while a down payment is a commitment to the lender.

2. The Amount of the Deposit is Usually a Percentage of the Sale Price (But Not Always)

Earnest money deposits are usually reflective of the sale price of the home. So, a more expensive home would usually require a higher deposit amount that a lower-priced property. The amount will also depend on the specific real estate market that you’re in, as every area has its own general practices surrounding deposits.

Further, a more competitive market would usually dictate higher deposit amounts. When buyers are competing with one another in a sizzling market – especially in bidding wars – the deposit amounts will usually be higher.

That said, the amount offered to sellers is usually based on a percentage of the purchase price, usually between 1% to 2%. In markets where homes are flying off the shelves, deposits can be even higher than this 1%-2% range, whereas slower markets may warrant amounts even less than 1% of the purchase price. However, sometimes a flat amount is offered, and not necessarily based on an exact calculation in reference to the sale price of the home.

3. The Money Will Be Held in Escrow

In the majority of cases, earnest money deposits are given to a third-party escrow company which holds the funds once the offer has been accepted and you sign the contract. In some cases, the listing real estate broker holds the deposit in a separate account. Under no circumstance should buyers ever give their deposit check directly to the seller, for obvious reasons.

Once the sale of the home is final, the funds held in the escrow account will be released from escrow and put towards the down payment.

4. Deposits Are Typically Refundable if the Deal Falls Through, But Not in All Cases

Earnest money deposits are refundable, but only if specific criteria are met. Buyers have the right to cancel a deal if they’ve included the appropriate contingencies in their offer and are unable to meet them. For instance, if a buyer’s offer is contingent upon them securing a mortgage but are denied financing, they can back out of the deal for this reason. Or, if a home inspection reveals issues that the buyer has a problem with (after including a home inspection contingency), the buyer can kill the deal based on unsatisfactory findings from the inspection.

But buyers can’t just arbitrarily back of real estate deals for no reason. Under certain circumstances, deposits may not be refunded back to the buyer. If it is found that the buyer did not meet all of the contractual obligations of the agreement, the buyer may be out of luck. In this case, the money will be handled according to the purchase agreement.

5. The Deposit Goes Towards the Purchase Price of the Home

Like other types of purchases that require a deposit, the amount handed over is credited towards the purchase price of the home. Whether you offer $5,000, $10,000, or even $100,000, the amount would go towards the price you agreed to pay for the home. So, the more you put down, the less your loan amount would subsequently be.

The Bottom Line

The earnest money deposit plays a key role in a real estate deal. The right amount can help sway a seller’s decision, especially in a hot market. But before you sign the check, it’s important that you know everything about these types of deposits in order to protect your hard-earned money.

When you’re on the prowl for a new home, the last thing you want to walk into is a home that reeks of cigarette smoke. It’s not exactly the most pleasant smell, and it really is something that sellers should deal with before they even list their home on the market.

But what if you fall in love with a home, despite its awful smell? Is the scent of cigarette smoke enough of a deterrent to force you to walk away from a property?

While not exactly ideal, a home that smells like cigarettes shouldn’t necessarily be written off. Sure, it will take some effort to eliminate those foul odors, and you might even be tempted to request that the seller tackle this job for you as a contingency before you agree to finalize the deal.

But if you end up having to do the job yourself, there are a few things you can do to get rid of the scent of cigarette smoke and help the interior of your new home smell fresh again.

1. Wash All Fabrics

Fabrics have a knack for holding onto smells, whether good or bad, so they need to be removed from the home and thoroughly washed. While this might not be the easiest or quickest job in the world, it would help if you took down all of your window drapes, removed covers from throw pillows, and take off tablecloths from tabletops and throw them in the wash.

Once they’ve been cleaned, dry them in the dryer over medium heat with a fabric softener sheet to ensure they come out smelling fresh. Before you replace them, you’ll need to have the rest of the home cleaned first, or you risk the newly-washed fabrics absorbing odors still present all over again.

2. Leave a Bowl of White Vinegar Out

Leaving out a bowl of white distilled vinegar can help absorb any foul odors in a space. Just be sure to replace the vinegar every day, and keep in mind that your home might smell like a tossed salad for a while until order has been restored in your home’s interior.

3. Leave Out Bowls of Charcoal

Similar to the vinegar-bowl idea, leaving out bowls of charcoal in every room that’s affected can help eliminate odors. It’s non-toxic and has long been used to detoxify many things, including the body and drinking water. Thanks to its ability to absorb pungent odors like cigarette smoke, it can make it an effective air purifier.

4. Clean Carpets and Upholstery With Baking Soda

As already mentioned, fabrics tend to be the biggest absorbers of smells, and carpets and upholstery are no exception. Baking soda can be very effective at neutralizing odors on surfaces like these. Sprinkle baking soda liberally all over your carpeting and furniture to naturally lift the odors and eliminate them. Ideally, the baking soda should be left on for a couple of hours or so, then vacuumed off.

5. Have Your Carpets and Upholstery Steam Cleaned Instead

If the baking soda trick doesn’t work, you can always have your carpeting and upholstery steam cleaned.

If you’re confident in your ability to deep clean your upholstery and carpeting using a rented steam cleaner, give it a shot. Just be wary of how much shampoo and water you use, because many DIYers tend to soak their carpets and use too much soap, making it very difficult to eliminate all the suds and get the fabric to dry.

Having your carpets and upholstery steam cleaned by professionals is the best way to get rid of all that absorbed smoky smell and will ensure that your textiles are left smelling much more pleasant.

6. Open the Windows

Sounds simple enough, but this obvious task can do wonders at allowing a lot of smoke particles to escape and fresh air to waft in.

7. Rent an Ozone Machine

Ozone machines remove foul smells – including cigarette smoke -by binding with the molecules that cause bad smells and eliminate them. Whether the smells are lingering on surfaces, fabrics, or in the air, ozone machines can effectively get rid of them and leave a fresher smell behind. They’re even effective for removing mold. While you can certainly buy an ozone machine, you can easily rent one for a fraction of the price.

8. Thoroughly Wash All Surfaces

Floors, walls, countertops, ceilings, and all other surfaces should be thoroughly washed to get rid of the smoky smell. You can make your own homemade cleaning solution by combining warm water, one part white vinegar, one part baking soda, and one part ammonia. Scrub all surfaces with this solution with a clean cloth to get rid of any grime that may be attracting and holding onto odor molecules.

9. Light a Few Candles

Once you’ve cleaned your home from top to bottom, light a few candles throughout the home. Candles are known to kill odors, and lighting a few scented ones can infuse much more pleasant smells in their place.

The Bottom Line

A smoke-smelling home is not pleasant at all, and the scent can even get in the way of being able to see the true potential of your home. But there are certain things you can do to get rid of that offensive odor and end up with a home you can be proud to call yours.

When it comes to real estate, location is everything, hence the adage, “location, location, location.” You could have a fabulous home, but if it’s in a bad location, its value can definitely suffer.

But that doesn’t mean it’s impossible to sell your home if the neighborhood it’s located in is less than desirable. Plenty of sellers find themselves in this exact position but manage to sell successfully, and you can too.

Here are some things you can do to help sell your home despite its bad location.

Boost Curb Appeal

There might be little you can do about the block you’re on, but there’s a lot you can do to make your home stand out, in a good way. The first thing you can do to ensure that buyers like what they see when they pull up to your home is to give the exterior a facelift. Boosting the curb appeal of your home can do wonders to attract buyers and increase the perceived value of the home.

If you’re selling in a bad location, you’ve got to pull out all the stops to impress buyers the moment they lay eyes on your house. Keep the lawn mowed, remove dead leaves, prune the bushes, plant some flowers, paint the door and shutters, and wash the windows. If your home is adjacent to a home that’s not very well maintained, consider planting some hedges or erecting a fence to add some separation.

Have Your Home Professionally Staged

You’ve charmed buyers with your home’s exterior, and now it’s time to do the same with the interior. Buyers should be “wowed” as soon as they cross over the threshold if you want them to be able to see past the sub-par location of the property. To do this, you’ve got to have your home staged.

While you could always stage your home yourself, a professional home staging company will probably be able to do a much better job at understanding what local buyers want and staging the home specifically to cater to this group.

Staging involves presenting a home in the most positive light by choosing the right furniture pieces and accessories and positioning them strategically to optimize flow and visual interest.

Professional staging has a track record of helping homes sell quickly and for more money compared to homes that have not been staged. If your home seems to offer everything that buyers are looking for in a home, they might be more willing to place less weight on the negative traits of the surrounding location.

Price it Right

Pricing real estate properly is key to selling within a reasonable amount of time, especially for homes that may be a tough sell. With a difficult location, pricing appropriately compared to other homes nearby that have recently sold is important. Pricing too high will certainly scare off buyers, particularly when it comes to homes that are located in a neighborhood that’s less than desirable.

Your real estate agent will conduct a comparative market analysis on similar homes that have recently sold, and you’d be well advised to heed their advice. The last thing you want to do is drop the price a few weeks after your listing goes live because there are no takers. Selling in a tough neighborhood is difficult enough, and trying to convince buyers to pay more than what it’s worth is even harder.

Make Improvements That Will Bring You a Decent ROI

Sometimes it might be necessary to make some improvements to your home in order to impress buyers. Maybe the kitchen seems too small, or the hallway is too dark and dingy. Whatever the case may be, upgrading specific aspects of your home might be warranted. Just be very careful where you’re spending your money and how much you’re spending.

Consider how much you can realistically sell for and account for that figure in your calculations. You don’t want to spend much more than what you’ll recoup when you sell.

Spending money on a fresh coat of paint, repairs, new flooring, new light fixtures, updating kitchens and bathrooms, and organizing closets can be very effective when done right.

Heavily Market an Open House

Have your agent advertise an open house to maximize the number of buyers who show up, and try to host the open house shortly after listing the property. Interest is usually highest for brand new listings, so you need to capitalize on this window of opportunity. Having as many buyers present during your open house will show other buyers that they’re not the only ones who may be interested in buying your home.

Give Directions Through the Nicer Part of Town

When providing directions for your open house, direct buyers through the nicer streets, if any exist. While you don’t want to send people on a major detour, you also want to point out that there are some positive parts to the area, reassuring buyers that the neighborhood isn’t necessarily all that bad.

Offer Concessions

A number of factors play a role in whether or not a buyer decides to put in an offer, and sometimes offering concessions may be just what’s needed to seal a deal. If possible, consider offering concessions to sweeten the deal and make up for the lack of a desirable location. You might choose to pay for part of the closing costs, provide a credit to buyers to cover the cost of home improvements or offer a home warranty for a certain amount of time.

The Bottom Line

Selling a home in a bad location isn’t exactly ideal, but there are definitely some things you can do to improve the situation. There’s always a buyer for every home, even those that are not located in the best neighborhood.

Some homeowners are pretty handy, which can be very convenient when a light bulb burns out or a door hinge needs to be tightened. But no matter how good you might be around the house, there are certain jobs that you should think twice about taking the DIY route for. Some jobs are just too big and complicated for homeowners and are best left to the professionals to handle.

Here are a few home improvement jobs that you probably shouldn’t take on yourself.

1. Fixing Electrical Wiring

It goes without saying that messing around with live wires puts you at risk of electrocution, not to mention electrical fires. Whether you’re trying to rewire the house, repair the electrical panel, or install wiring to a new space, this is not a job for an amateur. Besides, you might even have to get a permit to make any significant changes to the electricals in your house. This one’s just not worth risking the potential hazards that come with it.

2. Repairing Plumbing Pipes

Similar to meddling with the electricals, fussing with plumbing pipes can leave you with a big mess on your hands if you’re not skilled in this particular trade. Sure, you might be able to get away with minor jobs like unclogging a drain or hooking up your washing machine. But any major plumbing issues – like dismantling a toilet or fussing with the main plumbing line in any way – should be left to professional plumbers.

3. Repairing the Roof

Notice any peeling shingles or water damage in the attic? If so, your roof may require some attention, but not necessarily from you. For starters, climbing way up there is dangerous if the proper precautions aren’t taken. Further, do you really know what you’re doing once you’re up there? Honestly, roof repair is not a one-man job.

Instead, it usually takes a crew of experts to get the job done. Do yourself – and your house – a favor and call professional roofers to tackle any major roof repairs that may be required.

4. Removing Trees

Mature trees not only offer aesthetic appeal to your landscaping, but they can also provide some much-needed shade to your home as well as a certain amount of privacy and security. But big, old trees can also be a nuisance if they’re causing a big mess from leaves that are constantly falling. They could also be a bother if they’re too close to the home and provide intruders with an easier way to break into your house. Some old trees might even be diseased and will have to be removed as a result.

Whatever the reason for you wanting to remove your old trees, resist the urge to crack open the chainsaw and take it down yourself. If that tree happens to fall in the wrong direction, or you underestimated its reach once it’s horizontal, you could do some major damage and even cause serious injury. Even if the tree lands exactly where you want it, how will you remove it? And what will you do with the stump that’s left behind?

It would be much easier and even safer to consult with a tree service to take on this big job for you.

5. Removing Popcorn Ceilings

While they may have been popular back in the 80s and earlier, popcorn ceilings are nothing but an eyesore today. But as easy as it may sound to just scrape off that sprayed-on material to reveal a smoother surface, you run the risk of dealing with asbestos. This material may be harmless when left alone, but it can become a real hazard if it is disturbed and allowed to become airborne when it’s tampered with.

Ceiling specialists will test the area for the presence of asbestos, and if any is detected, they will deal with the popcorn ceiling removal accordingly. Even if no asbestos is found, the process of removing this material is an extremely messy, laborious, and time-consuming one that would be a nightmare for you to do on your own.

6. Applying Stucco

If your home’s exterior walls are looking a little tired, a fresh coat of stucco can breathe new life into them. But that doesn’t mean you should apply it yourself. A good stucco job can make a big improvement to the look of a home, but a shoddy job can make it look worse than before. And if you don’t do a perfect job, you could find yourself with bubbling and cracking in spots where the material was not applied evenly or properly.

Even if your home is covered in siding, that’s still not a job for the DIY homeowner to repair or replace. Professionals in masonry know what they’re doing and will get the job done right the first time around.

7. Repairing or Replacing Gutters

Gutters are super important for directing water runoff away from your home during bouts of precipitation to avoid water pooling at the base of your exterior walls. Without gutters, your home could easily be subject to water damage and even flooding if it rains particularly hard at any given time.

But if you notice that the gutters are bent, cut, or simply not doing their job properly, you might want to think twice about repairing them yourself. Your gutters are directly linked to your roof, so if you meddle with the gutters, you’ll ultimately end up messing around with the roof too. And we’ve already explained why the roof should be left to the professionals to deal with. You could end up causing more damage to the roof and even put yourself in danger.

8. Repairing the HVAC System

The summer season is the worst time for your A/C to konk out on you, and it will definitely require some immediate attention if it’s not working as it should. But that doesn’t mean you should tamper with the system or unit yourself. You might know a thing or two about your air conditioner or the HVAC system in general, but unless you’re an HVAC technician yourself, you probably don’t have the experience nor the knowledge necessary to fix whatever may be wrong with your system without potentially making things worse.

The Bottom Line

Owning a home inevitably means having to deal with repairs every once in a while. But that doesn’t mean you should take on every job that comes your way. In situations where the repairs are extensive or your safety is on the line, it always makes more sense to call in the pros. It’s not worth the hassle or the hazard, especially for these types of home improvement jobs.