Buying a Home
What is earnest money and is it refundable?
By Steve Lockhart
The short answer
Earnest money is a deposit you put down when your offer is accepted to show the seller you are serious, a good-faith payment that is credited toward your purchase at closing. It is typically held in escrow, not given to the seller directly.
Full answer
Earnest money is a deposit you put down when your offer is accepted to show the seller you are serious, a good-faith payment that is credited toward your purchase at closing. It is typically held in escrow, not given to the seller directly. Whether it is refundable depends on why the transaction falls apart. If you terminate during a valid contingency period, such as a failed inspection or a financing contingency you cannot satisfy, you generally get your deposit back. If you back out for reasons not covered by a contingency, or breach the contract, the seller may have a claim to the earnest money. Asking for and understanding this before you sign is one of the reasons buyers deserve clear representation. I walk through exactly when the deposit is at risk and when it is protected, so you never jeopardize it unknowingly.
Go a little deeper
Frequently asked
Questions buyers often follow up on
How much earnest money is normal in Las Vegas?
Buyers commonly offer earnest money anywhere from a few thousand dollars to tens of thousands, depending on the price point and the market. It should feel like a serious commitment, not a gamble. In a multiple-offer situation, a meaningful deposit can tip the decision your way; with an absurd one simply ties up cash. The right amount balances both.
If my financing falls through, do I get the deposit back?
If you terminate within your financing contingency and in the correct window, generally yes, the protection works and the earnest money returns. If the home has no financing contingency or the period has expired, the contract rules apply instead and the deposit may be at risk. That is why your deadlines sit on our shared calendar from day one, so the coverage never silently expires.
When does the seller actually receive my earnest money?
Not at the handshake. The deposit sits with escrow and is credited toward your purchase when the deal closes. If the transaction falls apart, the reason decides the outcome: the contract returns the deposit for a protected termination, or a breach can give the seller a claim. The contract defines each branch, and I will translate it into plain language before you sign.
The Lockhart Method
The Lockhart Method
Your Home | My Strategy | Proven Results
My strategy: treat the deposit as money with a plan, not money at rest. Keep the calendar and the contract on the table from day one, and the money returns by its own written route.
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