Back to Videos
Video
What Is Earnest Money?
Earnest money is one of the first things that comes up when you make an offer, but a lot of buyers aren't sure exactly what it is, how much to put down, or what happens to it. This short video explains it clearly.
Video coming soon
The key takeaways are below in the meantime.
Written by Bri Bond-Erwin
Key Takeaways
- Earnest money is a good-faith deposit submitted with your offer. It's not an extra expense, just money you commit early
- It's held in an escrow account (not given directly to the seller) until closing
- At closing, it's credited toward your down payment or closing costs
- If you back out with a valid contingency reason, you typically get it back
- If you walk away without a contractual reason, you risk losing it to the seller
- Typical amounts are 1–2% of the purchase price
Transcript will be available when the video is recorded.
Buying a Home
Have a question about buying?
Bri works with buyers at every stage, from figuring out your budget to getting keys in your hand. A quick conversation costs nothing.
Talk With Bri About Buying