Earnest Money In Washington: A Redmond Buyer’s Guide

Are you trying to figure out how much earnest money to put down on a Redmond home and what happens to it once your offer is accepted? You are not alone. In a fast Eastside market, the deposit you choose can help you win a home or expose you to more risk than you want. In this guide, you will learn how earnest money works in Washington, typical Redmond practices, and smart ways to protect your funds while staying competitive. Let’s dive in.

What earnest money is in Washington

Earnest money is your good-faith deposit that shows a seller you intend to complete the purchase. In Washington, it is credited to you at closing and is not an extra fee. If the sale closes, the deposit applies to your down payment or closing costs.

Your deposit is usually held by the neutral escrow or title company named in your contract. The escrow agent holds the funds until closing or release under your contract terms. Sellers value earnest money because it signals commitment and can serve as liquidated damages if a buyer breaches the agreement, depending on the contract.

How Washington contracts handle your deposit

Where the money goes

Most Washington buyers and sellers use standardized purchase agreements that specify the earnest amount, the escrow holder, and how the funds are handled. The escrow or title company receives the deposit and follows the written contract instructions. Escrow is neutral and does not decide disputes on its own.

When it is due

Your contract sets the deadline. On the Eastside, buyers commonly deliver the deposit within 1 to 3 business days after mutual acceptance. Your agent will confirm the exact timing in your signed agreement and help you meet the deadline.

When you can get it back

If you end the contract under a valid contingency within the stated timelines, the deposit is typically returned. Common contingencies include inspection, financing, appraisal, or the sale of your current home. If you cancel outside those protections, the seller may be entitled to the deposit per the remedies or liquidated damages clause.

If there is a dispute

If both sides disagree about who gets the funds, escrow usually holds the money until there is a mutual written release or a court order. Many Washington contracts encourage mediation or arbitration to resolve disputes.

Typical earnest money in Redmond

There is no single correct amount. Your deposit depends on price point, competition, financing, and risk tolerance. In the Eastside market, single-family homes in high-demand areas like Downtown Redmond, Education Hill, and Overlake often see stronger deposits to stand out in multiple-offer situations.

Industry guidance suggests deposits can range from a few thousand dollars to several percent of the purchase price. For many suburban homes, buyers might offer around 2,000 to 10,000 dollars. For higher-priced or more competitive Redmond homes, deposits of 10,000 to 50,000 dollars or roughly 1 to 3 percent of the price are not unusual. Treat these as examples, not rules. Your best number is the one that fits your offer strategy and risk comfort.

Strategies that strengthen your offer

• Offer a larger earnest deposit to show serious intent.
• Shorten timelines for inspection or financing to reduce seller uncertainty.
• Waive contingencies only if you fully understand the risk and can live with it.
• Use an escalation clause with proof of funds to compete in a bidding scenario.
• Provide strong lender preapproval or verification of cash.

Each move has a tradeoff. Larger deposits and fewer protections can help you win, but they raise your exposure if you later need to cancel outside contract rights. Align the strategy with your comfort level and funding plan.

A simple timeline for buyers

1. Mutual acceptance: your signed offer becomes a binding contract.
2. Deliver earnest funds: wire or deliver a check to the named escrow within the deadline in your contract, often within 1 to 3 business days.
3. Complete contingencies: inspections, appraisal, and financing within agreed timelines.
4. If you terminate within a valid contingency period, escrow typically returns the funds per the contract.
5. If all conditions are met, the deposit is applied to your cash to close at closing.

Protect your deposit

• Verify wire instructions directly with your escrow officer by phone to avoid fraud.
• Calendar all contingency and deposit deadlines and confirm receipt with escrow.
• Keep copies of your payment confirmation and escrow receipt.
• Name a reputable local escrow or title company in your offer.
• Make sure your contingencies and timelines are clearly written and understood.

Financing notes buyers consider

Your financing can influence your deposit strategy. Cash or conventional buyers often choose larger deposits because funds are more accessible. Buyers using programs with added lender rules may prefer a more conservative deposit and stronger contingency protection. The right approach depends on your loan type, reserves, and risk tolerance.

How this plays out in Redmond

Redmond neighborhoods near major employment centers and transit can see tight inventory at times, which encourages larger deposits and faster timelines. In quieter periods or less competitive segments, sellers may accept smaller deposits and more buyer-friendly contingencies. Your agent will help you read current neighborhood conditions so your deposit supports your goals.

Your next step

If you want to compete with confidence and protect your deposit, partner with a local advisor who lives and breathes the Eastside market. A focused strategy around earnest money, timelines, and contingencies can help you win the right home without taking on unnecessary risk. If you would like personalized guidance for a Redmond purchase, reach out to Cheryl Hill to discuss your goals.

FAQs

What is earnest money in a Washington home purchase?

• It is a good-faith deposit held by escrow that applies to your down payment or closing costs at closing.

How much earnest money do Redmond sellers expect today?

• It varies, but many buyers offer several thousand dollars, and competitive or higher-priced homes often see 1 to 3 percent of the price.

When is my earnest money due after mutual acceptance in Washington?

• Your contract controls the timing, but many Eastside deals call for delivery within 1 to 3 business days.

Who holds earnest money in King County transactions?

• A neutral escrow or title company named in the contract receives, holds, and disburses the funds per written instructions.

Can I get my earnest money back after an inspection in Redmond?

• If you terminate under a valid inspection contingency within the deadline, the deposit is typically returned per the contract.

What happens to my deposit if I breach the contract?

• The seller may retain the deposit as liquidated damages or pursue other remedies, depending on the contract language and law.

How do I avoid wire fraud when sending earnest funds?

• Call your escrow officer using a trusted phone number to confirm wiring instructions before sending any money.

Are larger deposits required for condos versus single-family homes in Redmond?

• There is no rule; amounts vary by price, competition, and buyer profile, though higher-demand single-family homes often prompt stronger deposits.