10/07/2026
Ever wondered what earnest money really is and where it goes? Let me break it down for you.
Earnest money is the deposit you put down when you make an offer on a home—it's your way of showing the seller you're serious about the purchase. According to the National Association of REALTORS®, most earnest money deposits typically range from 1% to 3% of the home's purchase price. So on a $350,000 home, you'd be looking at $3,500 to $10,500. This isn't extra money on top of your down payment; it counts toward your down payment at closing. The key thing to understand: this money goes into an escrow account held by a neutral third party—not the seller, not your agent—until closing day.
Why does it matter? Earnest money shows sellers that you're a qualified, committed buyer. In competitive markets, a higher deposit can make your offer stand out against other bids. It also protects you: if the deal falls through for a valid reason (like a failed inspection or appraisal), you typically get your earnest money back. But if you walk away without a legitimate contingency, you could lose it. That's why it's crucial to understand your contingencies and deadlines before you submit an offer.
Ready to make your move? Let's talk about what earnest money strategy makes sense for your situation.
📞 Select Property Solutions - 580-483-4543
✉️ [email protected]
🔗 https://lawtonareahomes.com/agent-detail/Select-Property-Solutions/389450
Give me a call or send a message today—I'm here to guide you through every step of the offer process with confidence.
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