Is earnest money confusing you as you get ready to buy in Oakhurst or intown Savannah? You are not alone. That first deposit can make your offer stronger, but it also carries risk if you miss a deadline. In this guide, you will learn what earnest money is, how much is typical locally, when it is refundable, and how to protect it from contract to closing. Let’s dive in.
What earnest money is
Earnest money is a good faith deposit you include with a ratified purchase agreement to show you are serious about buying. If you close, it is applied to your down payment or closing costs. If you cancel under an allowed contingency, it is typically returned. Because it is contractual in Georgia, the exact terms in your agreement control what happens to the deposit.
In Georgia, earnest money is held by the escrow agent named in the contract. That can be the listing broker, the buyer’s broker, or a neutral title or closing company. Sellers want it because it reduces the risk of a buyer walking away. You care because a stronger deposit can help you win, but it also increases exposure if you miss a contingency or default.
Typical amounts locally
Across many U.S. markets, earnest money often ranges from about 1 percent to 3 percent of the price. In Oakhurst and central Savannah, competition can push deposits higher, especially if multiple offers are common. In slower situations, smaller flat amounts can work.
Here are practical examples you can use as a starting point. Actual numbers depend on the home, your strategy, and seller expectations.
- $200,000 purchase: standard around $2,000 (about 1 percent). Competitive approach could be $3,000 to $4,000.
- $350,000 purchase: standard around $3,500. Competitive approach could be $5,000 to $6,000.
- $500,000 purchase: standard around $5,000 to $7,500. Competitive approach could be $7,500 to $10,000.
- $800,000 purchase: standard around $8,000 to $12,000. Competitive approach could be $16,000 to $24,000.
The right amount balances offer strength with the amount you are comfortable tying up temporarily.
When it is refundable
During due diligence
If your contract includes an inspection or due diligence period and you terminate within that window per the agreement, your earnest money is typically refundable. The period is often measured in calendar days and varies by contract. Make sure you know the exact number of days stated.
If financing falls through
If you cannot obtain loan approval by the financing deadline and your financing contingency allows cancellation, your deposit is usually returned. Keep lender communications and deliver any required notice in writing before the deadline.
If the appraisal is short
If the appraisal contingency applies and the home does not appraise at the needed value, you can usually terminate under the contract and receive a refund. Confirm the deadline for the appraisal and the notice requirements in your agreement.
If title or HOA issues arise
If the contract lets you object to title problems or unacceptable HOA documents and you cancel within the timeline, the deposit can be returned. Always follow the notice steps in the contract and keep copies.
When you could lose it
Missed deadlines or default
If you miss a contingency deadline or default on the agreement, the seller can often keep the earnest money as liquidated damages. Some Georgia contracts allow other remedies as well. Review the exact language in your form before you sign.
Waived contingencies
If you waive inspection, financing, or appraisal protections and later back out, the seller typically has a claim to the deposit. Waiving contingencies can make your offer more competitive, but it raises risk.
Failure to close for noncovered reasons
If you change your mind or cannot fund closing for reasons not covered by a contingency, you can forfeit the deposit. Know what your contract protects and what it does not.
Georgia timelines and mechanics
Delivery and receipt of funds
Your contract will state when and how you must deliver earnest money after ratification. A common range is 24 to 72 hours, but it is whatever the agreement says. Ask for a written receipt from the escrow agent so you can confirm funds were deposited into the correct trust account.
Inspection period basics
Georgia agreements often include an inspection or due diligence period in the range of about 7 to 15 days. Use this time to schedule inspections and make decisions. If you decide to terminate, you must do so in writing before the deadline.
Financing and appraisal dates
Your agreement will set deadlines to obtain loan commitment and complete the appraisal. Missing these dates without an active contingency increases the risk of forfeiture. Put all deadlines on your calendar on day one.
Closing date and extensions
The closing date is negotiated in the contract. If you need more time, you and the seller must agree in writing to extend. In some cases, an extension may include additional earnest money.
If there is a dispute
Escrow agents follow the contract. If buyer and seller give competing instructions, the agent may require joint written direction or take steps described in the contract’s dispute clause, such as mediation, arbitration, or interpleader with the court. Expect delays in distribution until the dispute is resolved.
Oakhurst and Savannah buyer tips
- Get mortgage preapproval before touring. It strengthens your position and reduces financing risk.
- Ask your agent about current deposit norms for your price point in Oakhurst and nearby intown Savannah neighborhoods.
- Decide how much you can comfortably tie up. Choose a deposit size that supports your strategy without causing stress.
- Name the escrow agent in your offer. Confirm wiring or check procedures and get a receipt immediately after delivery.
- Set clear contingency dates and learn the notice steps. Send notices in writing and keep copies.
- In competitive situations, consider a larger deposit or shorter timelines only if you accept the added risk.
- If issues arise, act fast. Share inspection reports or lender denial letters and give notice before the deadline.
- Protect against wire fraud. Confirm instructions by calling a known phone number for the escrow company and avoid sending cash.
Illustrative examples
Example A: $200,000 home in Oakhurst. Buyer offers $2,000 earnest money, a 10 day inspection period, and a 21 day financing contingency. If major issues are found and the buyer terminates within 10 days per the contract, the $2,000 is refunded. If the buyer waives inspection and later backs out, the seller can keep the deposit.
Example B: $500,000 home in intown Savannah, competitive. Buyer offers $7,500 earnest money (about 1.5 percent), shortens inspection to 7 days, and limits the financing contingency. The offer looks stronger, but the buyer faces a higher risk of losing $7,500 if deadlines are missed or protections are waived.
Actual amounts and dates vary by contract and market conditions.
Next steps
Set a target deposit that fits your comfort level, confirm the escrow agent, and map your contingency dates the moment your offer is accepted. Keep every receipt and deliver all notices in writing on time. If you want a calm walkthrough of deposit options for Oakhurst and intown Savannah, reach out for a quick consult. Have questions about how much earnest money to offer or how to protect it? Schedule a free, local chat with Angela Eschbach.
FAQs
What is a typical earnest money amount in Oakhurst or Savannah?
- Many buyers target around 1 percent as a starting point and increase toward 1.5 to 3 percent in competitive situations, but the right amount depends on price point and current local activity.
Who holds my earnest money in Georgia?
- The contract names the escrow agent, which is often a title or closing company, the listing brokerage, or the buyer’s broker; always request a written receipt.
When do I get my earnest money back if I cancel?
- If you terminate within an active contingency period, follow the notice rules, and meet the deadline, the deposit is typically refunded according to the contract.
Can the seller keep my earnest money if I change my mind?
- Yes, if you waive protections or miss deadlines, the seller can often retain the deposit as liquidated damages under the agreement.
What if the appraisal is low in Georgia?
- If your contract includes an appraisal contingency and the property does not appraise, you can usually cancel under that clause and receive a refund if you act before the deadline.
How do I wire earnest money safely?
- Verify wire instructions by calling the escrow company at a known number, never by email link, and consider using a check if permitted to reduce risk.
