Good Faith Deposit

If a buyer makes an offer and the seller agrees to it, the buyer will make a good faith deposit of a few hundred to a few thousand dollars depending on the value of the home. In the simplest of terms, good faith money is the buyer saying "I'm serious so here is some money. If I don't follow up and proceed with this deal you -the seller- can keep the good faith money.". By accepting the good faith money, the seller is making a commitment to work with the buyer and to halt any further attempts to sell the property.  The seller may ask for more good faith money if the real estate market favors the seller. Conversely the buyer may offer only a token amount if the market favors the buyer.