Earnest Money In Sammamish: How It Works For Buyers

Are you wondering how much earnest money you should offer on a Sammamish home and what happens to that deposit once your offer is accepted? You are not alone. In a competitive Eastside market, earnest money can help your offer stand out, but it also carries real risk if you do not plan your contingencies and timelines. In this guide, you will learn how earnest money works in Sammamish, typical amounts, key deadlines, and smart strategies to protect your deposit while writing a winning offer. Let’s dive in.

What earnest money means

Earnest money is a deposit you make when a seller accepts your offer. It shows good faith and commitment to move forward. If you close, the deposit is credited to your funds at closing. If you cancel under a valid contingency within the deadline, it is typically returned to you.

If you default after removing contingencies or miss a required step, your earnest money can be at risk. Washington contracts often allow the seller to keep the deposit as liquidated damages if the buyer defaults, depending on the agreed terms.

Sammamish market context

Sammamish sits within the Eastside market in King County. Desirable listings often draw strong attention, and sellers may compare multiple offers. In these situations, a larger or faster earnest money deposit can signal a stronger offer.

How much you put down should match current competition levels, price point, and your risk tolerance. In slower conditions, a modest deposit can work. In hot segments, a stronger deposit and clear timelines can help your offer rise to the top.

Typical earnest money amounts

There is no fixed rule for earnest money amounts. Across many U.S. markets, buyers often put down about 1% to 3% of the purchase price. On the Eastside, including Sammamish, you will commonly see higher deposits on competitive homes.

• Moderately competitive Eastside listing: often 2% to 3%
• Hot Sammamish listing: often 3% to 5% or higher to stand out
• Low-competition listing: around 1% may be reasonable

In very competitive situations or bidding wars, some buyers propose 5% to 10% or more. Others use alternative strategies like all-cash offers, escalation clauses, or larger down payments instead of pushing the deposit higher.

Who holds your deposit

In Washington, earnest money is generally delivered to an escrow or title company and held in a trust account. In some cases, depending on contract language, the listing brokerage may hold it. You should receive written confirmation of deposit and the escrow company’s contact information.

Escrow will disburse funds only according to the purchase and sale agreement, a mutual written agreement of the parties, or a court order. At closing, your earnest money is credited to your buyer funds.

Key timelines to track

Earnest money timelines are negotiated in the contract, but common Eastside patterns include:

• Deposit delivery: often within 1 to 3 business days of mutual acceptance. Some buyers deliver immediately.
• Inspection period: typically 5 to 10 days; competitive offers may shorten to 3 to 5 days.
• Financing contingency: often 21 to 30 days, sometimes shorter for faster closes.
• Closing window: commonly 21 to 45 days from mutual acceptance, depending on financing and seller needs.

You will usually deliver by wire, certified check, or cashier’s check. Always confirm wiring instructions directly with escrow to avoid fraud, and keep your deposit receipt.

How contingencies protect your deposit

Contingencies give you defined windows to investigate, secure financing, review title, and confirm value. If you cancel within a valid contingency period and follow the notice rules in the contract, you typically receive your earnest money back.

Inspection contingency

You can inspect, request repairs or credits, or cancel if you are not satisfied. Canceling within the inspection period under the contract’s notice requirements normally results in an earnest money refund. Once you remove the inspection contingency in writing, you usually cannot recover the deposit if you later back out for inspection-related reasons.

Financing contingency

If you cannot obtain financing despite diligent effort, and you provide the required lender documentation within the deadline, you can typically terminate and recover your deposit. If you waive this contingency to strengthen your offer and then cannot close, your earnest money may be forfeited.

Appraisal contingency

If the appraisal comes in below the contract price and you have an appraisal contingency, you can usually renegotiate, bring additional funds, or cancel within the timeline and receive your deposit back. Without this contingency, a low appraisal can create added risk to your deposit.

Title contingency

If there are title issues that the seller cannot cure and you follow the contract process to terminate within the deadline, your deposit can be returned. Always review title reports early in your timeline.

Sale-of-home contingency

This contingency is less common on competitive Eastside listings. If included, sellers may expect stronger earnest money and strict deadlines. Your deposit protections depend on the exact contract language and timing.

When your deposit is at risk

Your earnest money is at greatest risk when you remove contingencies and later default. Many Washington forms include a liquidated damages option that allows the seller to keep the deposit as the sole remedy if the buyer defaults, but the exact remedy depends on the contract.

Disputes often arise from missed deadlines or notice errors. Escrow will not release funds without mutual written instructions, a contract directive that clearly authorizes disbursement, or a court order. Keep thorough records, including notices, delivery receipts, inspection reports, lender denials, and correspondence.

Offer strategies that balance strength and safety

You can use earnest money to make your offer competitive without taking unnecessary risk:

• Offer a larger deposit while keeping key protections, such as inspection and financing contingencies.
• Deliver the deposit quickly and state the holding escrow clearly in your offer.
• Consider a shorter inspection window if you are confident in the property and vendor availability.
• Obtain a strong preapproval or pre-underwritten loan to reduce financing risk.
• Explore pre-inspections when permitted so you can write a cleaner offer without blind risk.
• If you need extra leverage, you can negotiate a portion that becomes non-refundable after a milestone, such as removing the inspection contingency. This increases risk and should be considered carefully.

Buyer checklist for earnest money

Use this quick checklist to stay on track:

• Before you write

  • Get preapproved or pre-underwritten by your lender.
  • Decide on an earnest money amount that fits your risk tolerance and the home’s competitiveness.
  • Plan for an inspection strategy and timeline.

• When you submit

  • Specify who holds the deposit, the amount, delivery deadline, and payment method.
  • Confirm inspection, appraisal, financing, and title contingency deadlines and notice procedures.

• After mutual acceptance

  • Deliver your deposit immediately or within the agreed business days and get a receipt.
  • Order inspections promptly and review reports within the window.
  • Provide lender documents quickly to keep financing on schedule.
  • If you must cancel, follow the contract’s notice rules and keep copies of all evidence.

• If there is a dispute

  • Contact your agent, the listing broker, and your escrow officer.
  • Share documentation and timelines. If unresolved, consult a local real estate attorney.

Common pitfalls to avoid

• Offering a small deposit in a hot segment when a larger, refundable amount could strengthen your offer safely.
• Missing a delivery deadline for the deposit or inspection response.
• Waiving inspection or financing without a clear backup plan or pre-inspection.
• Relying on verbal notices. Always send written notices as the contract requires.
• Wiring funds without confirming instructions with escrow by phone using a verified number.

Ready to craft a strong, safe offer in Sammamish? Get tailored guidance on deposit sizing, contingency timing, and negotiation strategy from a local advisor who does this every day. Reach out to Amanda Sipos to plan your next move.

FAQs

How much earnest money should Sammamish buyers plan for?

• Many buyers offer 2% to 5% in competitive Eastside situations, though 1% can work on less competitive listings and hot homes may see 5% to 10%.

Who holds earnest money in Washington home purchases?

• Escrow or title companies typically hold the deposit in a trust account; in some cases the listing brokerage holds it per the contract.

How fast do I need to deliver my deposit after acceptance?

• Many contracts call for delivery within 1 to 3 business days of mutual acceptance, though some buyers deliver immediately.

What if my inspection finds issues on a Sammamish home?

• If you have an inspection contingency and cancel within the deadline using the contract’s notice process, you typically receive your earnest money back.

Can I lose my earnest money if my loan is denied?

• With a financing contingency, if you act diligently and provide required lender documentation within the deadline, you can usually terminate and recover your deposit.

What happens if the appraisal is low on the Eastside?

• With an appraisal contingency, you can renegotiate, bring extra funds, or cancel within the timeline and receive your deposit back.

When is my earnest money non-refundable?

• Your deposit is most at risk after you remove contingencies and then default; the contract often allows the seller to keep the deposit as liquidated damages.

How is earnest money applied at closing?

• Escrow credits your earnest money toward your buyer funds at closing, reducing the amount you need to bring to close.