How Much Earnest "ESCROW" Money Is Normal скачать в хорошем качестве

How Much Earnest "ESCROW" Money Is Normal

#escrow #earnestmoney #thekeringroup #realestate #tampa Cash vs. Loan: The Earnest Money Showdown When you find "the one," the first thing your agent will ask is, "How much earnest money are you putting down?" This deposit, often called a Good Faith Deposit, is your way of telling the seller, "I’m serious enough about this house to risk my own cash if I walk away for no reason." But is the amount different if you’re paying cash versus getting a loan? In the 2026 market, the answer is a resounding yes. The Baseline: What is "Normal"? Generally speaking, earnest money across all deal types ranges from 1% to 3% of the purchase price. On a $400,000 home: Normal is $4,000 to $12,000. In Competitive Markets: In "hot" neighborhoods, sellers may expect 5% to 10% to even consider your offer. Scenario A: The Financed Offer (The Balancing Act) When you're using a mortgage, the seller knows there are "exit ramps" in your contract called contingencies (Appraisal, Financing, Inspection). Because the seller is taking a risk by holding the house for 30–45 days while your bank does its homework, they want a substantial deposit to ensure you don't just change your mind. Normal Amount: 1% to 2%. The Logic: You are likely already stretching your liquid cash to cover the down payment and closing costs. A 1% deposit is seen as a standard "handshake" in a financed deal. Protection: If your loan is denied (and you have a financing contingency), you get this money back. Scenario B: The Cash Offer (The Power Move) In a cash deal, the "risk" to the seller is much lower because there's no bank involved. However, the expectations for earnest money are often higher. Normal Amount: 3% to 5% (or a high flat fee like $20,000). The Logic: Since you don't have a financing contingency, your offer is "stronger." Sellers expect you to put your money where your mouth is. By offering a larger earnest money deposit, you prove you have the liquid funds ready to go. The Advantage: Because you are offering a high deposit and a fast closing (often 7–14 days), you can often negotiate a lower purchase price. The seller is trading a few thousand dollars in price for the absolute certainty of your high deposit. Comparison at a Glance ($400,000 Purchase) FeatureFinanced Deal (Loan)All-Cash DealTypical Deposit$4,000 – $8,000 (1-2%)$12,000 – $20,000 (3-5%)Why?Standard "good faith."Proves liquidity and "seriousness."RefundabilityHigh (if loan/appraisal fails).Low (usually only if inspection fails).Closing Speed30 – 45 Days.7 – 14 Days. The "Silent" Protection: Escrow Regardless of the amount or the way you pay, never give earnest money directly to the seller. In 2026, it is standard practice for these funds to be held by a neutral third party, like a Title Company or Escrow Firm. This ensures that if the deal fails for a legal reason (like a failed inspection), your money is protected and can be returned to you without a fight. The Bottom Line If you are buying with a loan, stick to the 1–2% range to keep your cash liquid for closing. If you are buying with cash, use a 3% or higher deposit as a tactical weapon to beat out other offers and potentially snag a discount. The Kerin Group (813) 530-1996 REAL Estate - REAL Fun - REAL Community http://www.TheKerin.com   / thekeringroup   https://thekerin.com/how-much-earnest... For all your Tampa Real Estate Needs!! - http://www.TheKerin.com If you're relocating to Tampa or just visiting, be sure to check out our other channel for AWESOME food & fun! Go to http://www.FunTampa.com ⇢ Subscribe!    / funtampa   ⇢ Facebook:   / funtampa   ⇢ Instagram:   / funtampa   ⇢ TikTok:   / funtampa