What Is Earnest Money?

Earnest money is a good-faith deposit a buyer makes when their offer is accepted. It shows the seller you're serious about buying the home.

How Earnest Money Works

The deposit is typically held by the escrow or title company, not the seller. At closing, it's applied toward your down payment and closing costs.

How Much Is Typical?

Earnest money commonly ranges from about 1 to 3 percent of the purchase price, though it varies by market and how competitive your offer needs to be.

Is Earnest Money Refundable?

If you cancel within the protections of your contract's contingencies, your earnest money is usually refundable. If you back out for reasons not covered by a contingency, you could lose it.

Questions About Your Deposit?

Reach out and I'll explain exactly how earnest money works for your offer and how to protect your deposit.