What is earnest money?

Real EstateWarren TeamPublished April 25, 2026

Quick answer

Earnest money is a good-faith deposit (typically 1-3% of purchase price) you put up when an offer is accepted, held in escrow. Credited to your closing costs at closing. Refundable if you back out within contingency periods.

Earnest money lifecycle: deposit, hold, apply or refund.

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