Earnest money is a good-faith deposit you make when a seller accepts your offer. In Washington there's no legally required amount, but buyers typically put down 1%–3% of the purchase price — roughly $13,000–$39,000 on a $1.3 million Eastside home. It's held by a neutral third party, credited back to you at closing, and — if your offer keeps the right contingencies and you meet the deadlines — it's generally refundable if the deal falls through.
What earnest money actually is
When you write an offer, the seller is being asked to take their home off the market and stop entertaining other buyers. Earnest money is how you show you're serious: it's a deposit that tells the seller you intend to follow through. In Washington, the amount and terms are written directly into your purchase agreement (the NWMLS Residential Purchase and Sale Agreement and its earnest money addendum), so it isn't a vague handshake — it's a specific number with specific rules attached.
How much earnest money do Washington buyers put down?
There is no state-mandated minimum. In practice, 1%–3% of the purchase price is the common range across the Seattle metro. What's "right" depends on the market and how competitive your offer needs to be:
- Balanced or slower markets: 1%–2% is usually plenty to be taken seriously.
- Competitive Eastside markets — Bellevue, Redmond, and Kirkland — where multiple offers are common: a larger deposit (often 3%+) can signal strength and help your offer stand out.
A bigger deposit doesn't cost you more overall — it's applied to your purchase either way. It simply puts more of your cash at stake sooner, which is exactly why sellers read it as a sign of commitment. Deciding the right number is part of writing a competitive offer; see how to win a bidding war on the Eastside.
Where does the money go?
Your earnest money does not go straight to the seller. It's deposited with a neutral third party — typically the escrow/closing company or the brokerage's trust account — where it's held until closing. At the closing table it's credited toward your down payment or closing costs, so it's money you were going to pay anyway, just committed early. That's why it never counts as an "extra" cost; for the full picture of cash needed at closing, see closing costs in Washington.
When and how do you pay it?
Earnest money is due after your offer is accepted, not when you write it — typically within a couple of business days of mutual acceptance, as spelled out in your contract. You don't hand cash to the seller. Instead you deliver it to the neutral escrow holder by personal check, cashier's check, or wire transfer, and you should receive written confirmation that it was received. A few practical notes for Washington buyers:
- Have the funds ready before you offer. In a fast Eastside market you may go from accepted offer to deposit deadline in 48 hours — the money needs to be liquid, not tied up in investments.
- Keep a paper trail. Lenders verify the source of your earnest money, so pay from a documented account rather than cash, and keep the receipt.
- Confirm wire instructions by phone. Real-estate wire fraud is real; verify escrow's wiring details using a known number, never one emailed to you.
Once received, the deposit simply sits with escrow until closing — it isn't spent, and neither party can unilaterally grab it if a dispute arises.
Is earnest money refundable? The part that matters most
This is the question that keeps buyers up at night, and the honest answer is: it depends on your contingencies and your deadlines. A contingency is a condition in your contract that lets you cancel and keep your deposit. Common ones in Washington include:
- Financing contingency — protects you if your loan isn't approved.
- Inspection contingency — lets you walk (or renegotiate) based on the home's condition.
- Appraisal contingency — protects you if the home appraises below the agreed price.
- Title / neighborhood review and other agreed conditions.
If you cancel while a contingency still applies — and you follow the contract's notice and timing rules — your earnest money is generally returned. If you've waived those contingencies (increasingly common in competitive offers) or you back out for a reason the contract doesn't protect, the seller may be entitled to keep the deposit. In Washington, the standard NWMLS forms typically cap the seller's remedy at the earnest money amount, which is one reason the size of your deposit is a real decision, not a formality.
A quick example: say you offer $1.3M with a $26,000 deposit and a five-day inspection contingency. If the inspection turns up a failing roof and you cancel within those five days, your $26,000 comes back. Waive that contingency to sweeten the offer, then cancel over the same roof, and the seller may keep it. The protection isn't the deposit itself — it's the contingency and the deadline attached to it.
How to protect your deposit
- Understand every contingency before you waive it. Waiving inspection or financing to win a bidding war can be a smart strategy — but only when you know the risk and can afford it.
- Watch the calendar. Contingencies expire on specific dates. Miss a deadline and a protection you were counting on may quietly lapse.
- Get pre-underwritten, not just pre-qualified. The stronger your financing, the safer it is to shorten or waive a financing contingency.
- Put agreements in writing. Verbal reassurances don't protect your deposit — the signed contract does.
This is precisely where having a broker in your corner pays for itself: tracking deadlines, structuring contingencies, and making sure the deposit terms actually protect you.
Earnest money vs. down payment
They're easy to confuse but they're not the same thing. Earnest money is the smaller good-faith deposit made when your offer is accepted. Your down payment is the larger sum you bring at closing. Because your earnest money is credited toward what you owe, it effectively becomes part of your down payment or closing costs — you don't pay it twice. New to all of this? Start with the first-time buyer guide for King County & the Eastside.
Keep more of your cash with a flat fee
Earnest money isn't where buyers overspend — agent commissions are. A traditional buyer's agent charging ~2.5% on a $1.3M Eastside home costs about $32,500. A flat $2,999 buyer service does the same job — structuring your offer, protecting your earnest money, and negotiating on your behalf — while keeping tens of thousands in your pocket. Compare the two in flat fee vs. a traditional buyer's agent, and see who pays the buyer's agent in Washington.
For a neutral primer on deposits, the CFPB's explainer on earnest money is a helpful reference alongside your own broker's guidance.
General information, not legal or financial advice. Earnest money amounts, contingencies, and contract terms vary by transaction and change over time — confirm current specifics with your broker and escrow officer, and read your purchase agreement carefully before signing. Shi Hao Liu is a licensed WA real estate broker (License #26003789) with Kelly Right Real Estate. Verify any WA broker at the WA Department of Licensing.