Earnest Money Explained: What PNW Buyers Need to Know

You found the home you love, your offer is taking shape, and then a new term lands on the table: earnest money. For many PNW buyers it is the first real check they write in a purchase, so it helps to know exactly what it does before you wire a dollar.

What is earnest money?

Earnest money is a good-faith deposit you put down when your offer is accepted. It tells the seller you are serious, and it gives them confidence to take the home off the market while you work through inspections, financing, and the rest of the process. It is not an extra fee. If the sale closes, the money goes toward your purchase.

How much should you expect to put down?

There is no fixed number. In many transactions, earnest money lands around 1-3% of the purchase price, but the amount depends on local norms, price point, and how competitive the situation is. In a multiple-offer scenario, a larger deposit can strengthen your offer. Your agent can tell you what is typical for the PNW neighborhood you are shopping in right now.

Where does the money go?

You do not hand the deposit to the seller. It is held in a neutral escrow or trust account while the sale is pending. When you get to closing, it is credited toward your down payment and closing costs, so it stays part of your budget rather than adding to it.

When is it refundable?

This is the part that matters most. Purchase contracts include contingencies, such as inspection, financing, and appraisal, and each comes with its own deadline. If you back out for a reason a contingency covers, within its timeline, the deposit is typically returned. If you walk away for a reason the contract does not cover, or after a deadline passes, the seller may have a claim to keep it. The specifics live in your written agreement, so read the timelines closely and lean on your agent before you sign.

The bottom line

Earnest money is a normal, useful part of buying a home: it shows commitment, and it comes back to you at the closing table. If you are getting ready to make an offer anywhere in Washington, reach out to the LaCount Home Group. We will walk you through deposit norms, contingencies, and strategy so your offer is strong and protected.