Earnest Money Calculator

Purchase Price

$

Market Conditions

Competitive markets typically require higher earnest money

Property Type

Buyer's Financing

State/Region

Earnest Money Recommendations

Recommended Earnest Money Range

Minimum

0

0%

Recommended

0

0%

Strong Offer

0

0%

Factors Considered

Market conditions factor
Property type consideration
Financing type adjustment
Regional standards applied

Important Reminders

• Earnest money is typically held in escrow
• Becomes part of down payment at closing
• May be forfeited if buyer defaults (check contract)
• Higher amounts show seller you're serious

Earnest Money Tips

• In hot markets, 2-3% earnest money is common
• Cash offers often include higher earnest money
• Always use a reputable escrow company
• Verify earnest money terms in the contract
• Consider contingencies that protect earnest money

Regional Standards

Standard Markets

1-2% typical

High-Cost Areas

2-3% common

Competitive Markets

3-5% for strong offers

Cash Offers

Often 5%+ to show strength