Earnest Money Explained for Sammamish Buyers

Thinking about making an offer on a home in Sammamish? Your earnest money can help you win in a competitive market, but it can also be at risk if you miss a step. You want a clear, stress-free plan that balances offer strength with smart protections. In this guide, you will learn what earnest money is, typical amounts and timelines on the Eastside, when it is refundable, and how to structure your offer with confidence. Let’s dive in.

What earnest money is

Earnest money is a good-faith deposit you include with your offer to show the seller you are serious. If your sale closes, the deposit is applied to your purchase price at closing. It is separate from your down payment and closing costs.

It also serves a practical purpose. If a buyer breaches the contract after removing protections, the seller may be entitled to keep the deposit, depending on the agreement. Clear contract language and deadlines control what happens next.

Sammamish norms: amounts and timing

Sammamish is part of the Eastside market. Well-priced, move-in-ready homes often attract strong interest, which puts more focus on clean terms and meaningful deposits. There is no single required percentage, but there are common ranges and timelines you will see.

How much to offer

• A common rule of thumb is 1% to 3% of the purchase price as a starting point.
• In highly competitive situations, some buyers offer more, such as 3% to 5% or a fixed amount like $10,000 to $50,000.
• The right amount depends on price point, market heat, and your risk tolerance. A larger deposit can signal strength when paired with smart protections.

When to deposit

• Most local purchase agreements require you to deposit earnest money quickly after mutual acceptance, often within 1 to 3 business days.
• The timeline is negotiable, but shorter timeframes are common in competitive offers.
• Always get a written receipt showing the amount, date, and where funds are held.

How your funds are held and protected

In King County, earnest money is typically held by an escrow or title company. In some cases, it may be held in the listing brokerage’s trust account or another agreed escrow account. These funds are kept in trust and disbursed only according to the contract and proper instructions.

Safety matters when you move money. Verify wire instructions by calling the escrow company at a trusted number, not the one in an email. Confirm the escrow file number and request written confirmation of your deposit right away.

When earnest money is refundable

Your contract controls whether and when you can receive a refund. Standard Washington agreements include contingencies that protect you if you act on time and follow the notice rules.

Buyer protections that allow refunds

• Inspection contingency. If you terminate within the allowed inspection period and follow the contract steps, you typically receive your deposit back.
• Financing contingency. If you are unable to obtain financing and give notice within deadlines, the deposit is normally refundable.
• Appraisal contingency. If the appraisal comes in low and you terminate per the contract, you usually get your funds back unless you agreed otherwise.
• Title or document issues. If the seller cannot deliver marketable title or required documents, you can often cancel and receive a refund.
• Other stated protections. Condo or HOA reviews and seller disclosure reviews can also provide refund rights if used within timelines.

When your deposit is at risk

Earnest money can be forfeited if you breach the contract after removing or exhausting your protections. Missing deadlines or waiving protections increases risk, so keep a close eye on dates and notices.

• Breach after removing contingencies. If you later refuse to close without a permitted reason, the seller may be entitled to keep the deposit as liquidated damages or pursue other remedies, depending on the contract.
• Missed deadlines. If you fail to give required written notice on time, you can lose contingency protection.
• Waived protections. Waiving inspection or financing can make it harder to reclaim your earnest money if issues arise.

If there is a dispute over who should receive the funds, escrow may hold the money until both parties agree or until an arbitration or court decision. In some cases, escrow can send the funds to the court through an interpleader process.

Offer strategies for Sammamish buyers

You can build a stronger offer without taking on unnecessary risk. The key is to balance a meaningful deposit with clear contingency timelines and procedures.

Strength without overexposure

• Increase the deposit, keep key contingencies. A larger amount signals commitment while inspection, financing, and appraisal protections preserve refund rights if used on time.
• Shorten timelines rather than waive. Offer a shorter inspection period, such as 7 to 10 days, instead of no inspection at all.
• Use appraisal gap coverage carefully. Consider agreeing to cover a set dollar amount above the appraised value while keeping your financing contingency.
• Be precise. Spell out return triggers and notice steps in writing so everyone understands how funds are handled.

Contract details to confirm

• The exact deposit amount and due date after mutual acceptance.
• The escrow or title company that will hold funds, including verified wiring instructions.
• The length of each contingency period and the notice method required for termination.
• Remedies on default, including any liquidated damages clause and how funds are released.

Step-by-step: make and protect your deposit

1. Align on strategy. Decide your deposit amount and contingency plan based on the home, competition, and your comfort level.
2. Put it in writing. Include clear deposit terms, escrow holder, and timelines in your offer.
3. Fund on time. Send funds within the agreed window and confirm receipt in writing.
4. Track deadlines. Calendar inspection, appraisal, and financing dates and notice cutoffs.
5. Decide early. If you plan to terminate under a contingency, do it within the window and follow the contract steps.
6. Close with confidence. If all conditions are met, your deposit is credited to you at closing.

Common mistakes to avoid

• Sending funds without verifying wire instructions by phone.
• Waiving key protections without fully understanding the risk.
• Missing notice deadlines during inspection, appraisal, or financing.
• Assuming there is a standard deposit percentage. There is not. Local norms vary by price and competition.
• Not requesting a deposit receipt and escrow file confirmation.

Work with a local team you can trust

Sammamish offers great options across a range of price points, and the best homes can move quickly. You deserve guidance that combines neighborhood knowledge, strong negotiation, and tight operational follow-through. Our team structure includes dedicated operations and transaction support so your deadlines, deposits, and documents are handled with care.

If you are getting ready to write an offer, we can help you calibrate earnest money and craft a winning, protected plan. Connect with the people-first advisors at Nest NW Group to talk strategy or get started today.

FAQs

How does earnest money work for Sammamish home purchases?

• Earnest money is a good-faith deposit added to your offer, held in escrow, credited to you at closing, and controlled by your contract’s timelines and contingencies.

How much earnest money should a Sammamish buyer offer on a $1M home?

• Many buyers start around 1% to 3%, and some go higher in competitive situations. Match the amount to market conditions and your contingency plan.

When is earnest money due after my offer is accepted?

• Local contracts commonly require deposit within 1 to 3 business days of mutual acceptance, though timelines are negotiable.

When can I get my earnest money refunded if I cancel?

• If you terminate under a valid contingency, such as inspection, financing, or appraisal, and follow the notice rules on time, it is typically refundable.

What puts my earnest money at risk in Washington state?

• Breaching after removing protections, missing notice deadlines, or waiving key contingencies can lead to forfeiture, subject to your contract.

Where is my earnest money held during the transaction?

• Usually with an escrow or title company, or a brokerage trust account named in the contract. Always get a written receipt and confirm details.