Option Money is a non-refundable fee paid by buyers to sellers for the right to cancel the contract within a time specified in the purchase contract, usually 7-10 days.

Typically, buyers use this time for inspections and to negotiate repairs or price adjustments, if applicable.

Option Money is typically between $100 – $1,000 and/or the greater of .1% of the purchase price.

Earnest Money is a deposit that buyers pay into an escrow account with the Title Company when the purchase contract is executed.

Under certain circumstances, earnest money can be refunded if the buyer decides to terminate the purchase contract and if not, the Earnest Money is applied towards buyer’s down payment and closing costs.

Earnest Money typically ranges from 1% – 3% of the Purchase Price.