Earnest money is the deposit that turns an offer into a serious offer. Delivered within 24–72 hours of a ratified contract to an escrow-holding party (typically the title company or listing brokerage), it signals your commitment and, at closing, is credited toward your down payment or closing costs. If you honor the contract, it is always your money.
The size of the deposit is a negotiating tool. In competitive scenarios, 3–5% (or more) signals seriousness and can win a home against a higher-priced but weaker-earnest offer. In softer markets, 1% is often sufficient.
Typical Range
1%–3% of purchase price in Northern Virginia; 3–5% in competitive scenarios.
Refundability
Refundable if you exit within an active contingency period; at risk if you default without one.
Held in Escrow
Never wired directly to the seller — always to a neutral escrow party.
- Typical Range
1%–3% of purchase price in Northern Virginia; 3–5% in competitive scenarios.
- Refundability
Refundable if you exit within an active contingency period; at risk if you default without one.
- Held in Escrow
Never wired directly to the seller — always to a neutral escrow party.