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Don't Give an Earnest Money Deposit Directly to a For Sale By Owner Seller

Your good faith deposit should go into a trust account. Some for sale by owner sellers don't understand that funds are to be applied to your expenses at closing.

I've heard many stories about sellers who spent the deposit money prior to closing. When the transactions didn't take place for valid reasons--such as financing or repair issues, the buyers had to fight for a refund.

Find an attorney or other neutral party who will hold the deposit for you until closing day and make sure your contract dictates what happens to the funds if the transaction doesn't close.

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WHAT MAKES UP CLOSING COST?

There may be closing cost customary or unique to a certain locality, but closing cost are usually made up of the following:
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Attorney's or escrow fees (Yours and your lender's if applicable)

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First premium of mortgage Insurance (if applicable)

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First payment to escrow account for future real estate taxes and insurance

Paid receipt for homeowner's insurance policy (and fire and flood insurance if applicable)

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Baltimore remained one of the 10 largest cities in the United States from 1790 until about 1970.