09/09/2026
Earnest money is one of those things that first-time homebuyers may know is part of the process, but rarely know where it fits in the strategy…so let’s fix that!
Earnest money is a deposit you put down shortly after your offer is accepted. It’s basically a way of telling the seller, "I'm serious about this house." It's not an extra fee on top of your down payment; it's part of it. The amount varies, but around here it's typically 1 to 3% of the purchase price.
Here's the part people don't realize... that money doesn't go to the seller. It goes into an escrow account held by a third party like a title company, real estate brokerage, or attorney until closing. Nobody touches it until the deal is done, which protects both sides.
So when do you get it back? If everything goes smoothly and you close on the home, your earnest money simply gets applied toward your down payment or closing costs. You don't lose it; it just becomes part of what you already owe.
If the deal falls through for a reason your contract protects you for, like the home doesn't appraise for the offer price, the inspection turns up something major, your financing falls through, or you decide to walk away from that home completely, you typically get your earnest money back too. That's exactly what contingencies are there to protect.
Now, when do you NOT get it back? If you walk away from the deal for a reason that isn't covered by your contingencies, say you just changed your mind, the seller may be entitled to keep it. This is exactly why understanding what's in your contract before you sign matters so much, and why I walk every buyer through their contingencies before we ever submit an offer.
Earnest money isn't something to be nervous about; it's very normal, protective part of the process once you understand how it works.
If you're getting ready to buy and want me to walk you through exactly what to expect, I'm always here for you!
Jennifer Fortune
Fortune Properties w/ Keller Williams Signature Partners
📱 C: 678-457-8337
📞 O: 678-631-1700
✉️ [email protected]