How much earnest money do buyers usually put down?

Often 1–3% of the purchase price in many markets, though customs vary. Hot listings may push buyers higher; your agent should advise locally.

Is earnest money the same as a down payment?

No. Earnest money is a good-faith deposit held in escrow and usually applied to your closing costs or down payment if the deal closes.

When do buyers lose earnest money?

Typically if they terminate outside contingency rights or miss deadlines after contingencies are removed. Contract language controls.

Who holds the earnest money?

Usually a title company, escrow officer, or brokerage trust account — never hand cash to the seller personally.

Earnest Money Deposits Explained for Home Buyers (2026)

July 22, 2026 · Guide · 1 min read

Earnest money is leverage and liability at the same time. It strengthens your offer, but only if you understand the contingency clock attached to it.

Protect the Deposit

Calendar inspection, appraisal, and financing deadlines
Confirm receipt of funds in writing from escrow
Do not waive contingencies casually to "win"

Related: how long it takes to buy a house. Compare agents by city or find agents near you.

Frequently Asked Questions

How much earnest money do buyers usually put down?: Often 1–3% of the purchase price in many markets, though customs vary. Hot listings may push buyers higher; your agent should advise locally.
Is earnest money the same as a down payment?: No. Earnest money is a good-faith deposit held in escrow and usually applied to your closing costs or down payment if the deal closes.
When do buyers lose earnest money?: Typically if they terminate outside contingency rights or miss deadlines after contingencies are removed. Contract language controls.
Who holds the earnest money?: Usually a title company, escrow officer, or brokerage trust account — never hand cash to the seller personally.