Have you heard you need earnest money to buy a home in Everett but are not sure how it actually works? You are not alone. Many first-time and relocating buyers in Snohomish County have the same questions about how much to offer, when it is due, and how to protect it. In this guide, you will learn the basics of earnest money in Washington, Everett-area norms, refund rules tied to contingencies, and smart strategies to strengthen your offer without taking on unnecessary risk. Let’s dive in.
What earnest money is in Washington
Earnest money is a good-faith deposit you offer when you submit a purchase offer. It shows the seller you are serious and committed to the purchase. If the sale closes, the deposit is credited to you at closing and can apply to your down payment or closing costs. It is not a separate fee.
In Washington, your Purchase and Sale Agreement governs everything about the deposit. That includes who holds it, when it is due, and what happens if the sale does not close. The agreement’s deadlines and instructions control the process.
Who holds the funds
A neutral third party typically holds your deposit. In most Washington transactions, this is an escrow or title company. In some cases, the seller’s brokerage trust account is named in the contract. The Purchase and Sale Agreement will identify the holder.
When you pay it
Most contracts require delivery within a short window after mutual acceptance. Expect to send your deposit within 24 to 72 hours, depending on what your contract states. The agreement will spell out where to send the check or wire and the exact timing.
Why contracts and deadlines matter
Your rights around earnest money are defined by the purchase contract and its timelines. Many Washington contracts include language that makes deadlines strict. If there is a dispute, the contract’s remedies clause governs resolution, which can include mediation, arbitration, or court.
Typical amounts in Everett and Snohomish County
There is no single standard amount, but there are clear local norms you can use as a starting point.
How much is common locally
In the Greater Seattle area, including Everett and Snohomish County, deposits often range from a few thousand dollars up to about 1 to 3 percent of the purchase price. For lower-priced homes, buyers often offer flat amounts like 1,000 to 5,000 dollars. For more competitive or higher-priced listings, it is common to see 1 percent or more of the price.
How market conditions shift norms
Market conditions in your neighborhood influence expectations. In a strong seller’s market with multiple offers, buyers often increase the deposit, shorten timelines, or waive some contingencies. In a balanced or buyer’s market, deposits tend to be more modest and buyers keep fuller protections.
Tiered or staged deposits
Some buyers use staged deposits to show commitment while managing cash flow. For example, they might offer a smaller amount at mutual acceptance and a larger wired deposit a few days later. Your contract needs to specify the amounts, timing, and who holds each stage.
When earnest money is refundable
Refundability hinges on contingencies, deadlines, and proper written notice. If you follow the process in your contract, you can usually protect your deposit while you do due diligence.
Contingencies that protect you
Common contingencies that affect refundability include:
- Inspection contingency. If you inspect within the agreed period and terminate or negotiate within that window per the contract, your deposit is typically refundable.
- Financing contingency. If you cannot obtain financing by the deadline and you follow the contract’s notice and termination steps, your deposit is generally refundable.
- Appraisal contingency. If the appraisal comes in low and you follow the contract’s process to address it or terminate before the deadline, the deposit is usually refundable.
- Sale-of-home contingency. If included and you cannot sell your current home as required, you can preserve refund rights by following the notice terms in the agreement.
Steps to keep refund rights
To protect refundability, follow these best practices:
- Track every deadline and send all required notices in writing before the window closes.
- Keep records of emails, signed forms, and confirmations.
- Deposit the funds with the party named in the contract and confirm receipt to avoid a technical default.
When a seller may keep it
If a buyer defaults without a valid contingency or misses a critical deadline, the seller may be entitled to keep the deposit under the remedies clause. Some contracts use a liquidated damages approach that caps what the seller can keep. Others allow additional remedies. Escrow holders follow the contract and will not release funds without proper authorization or resolution.
Example timeline for Everett buyers
Every deal is different, but here is a common flow for Snohomish County:
- Day 0: Offer accepted. Earnest money is due within the window in your contract, often 24 to 72 hours.
- Days 1 to 10: Inspection period, often 7 to 10 days unless negotiated otherwise. Schedule inspectors right away.
- Days 7 to 21: Appraisal ordered and completed as part of the loan process. Timing depends on lender and appraiser availability.
- Days 21 to 30: Financing contingency deadline. Your lender aims to issue a loan commitment by this date.
- Before closing: If you need to terminate under a contingency, send the notice before the deadline to preserve refund rights.
Use these steps as a planning guide with your agent and lender. The exact timeline will be defined in your purchase agreement.
Smart strategies for competitive offers
You can write a strong offer in Everett without taking on more risk than you are comfortable with. Align your deposit, contingencies, and timing with current neighborhood norms.
Prepare before you shop
- Get a written mortgage pre-approval. Sellers expect it in competitive situations.
- Ask your agent about recent deposit norms in your target Everett neighborhoods.
- Decide how much cash you can place at risk if you choose to shorten or waive contingency periods.
Pick the right deposit strategy
- Standard approach. Offer a modest deposit, such as 1 to 2 percent or a local flat amount, and keep standard contingencies.
- Competitive approach. Increase the deposit and consider shorter contingency windows to stand out. Understand the additional risk before you commit.
- Staged deposits. Offer an initial deposit at acceptance and a larger wire within a few days, clearly defined in the contract.
Deposit and track safely
- Use a traceable method such as a wire or cashier’s check and confirm receipt with escrow in writing.
- Verify wiring instructions by calling the escrow or title company using a known phone number. Wire fraud is a real risk, so always confirm before you send funds.
- Keep proof of deposit and contact details for your escrow holder.
Manage contingencies like a pro
- Schedule inspections immediately after acceptance to preserve leverage during the inspection period.
- Coordinate quickly with your lender to submit documents and order the appraisal.
- If an issue arises, notify the seller in writing per the contract and provide any required documentation.
Call in pros when needed
If you are considering waiving contingencies or making a very large deposit, discuss the risks with your agent. In complex situations or disputes, consult a real estate attorney for guidance before agreeing to release funds.
Common pitfalls to avoid
- Missing deposit deadlines or sending funds to the wrong place.
- Assuming verbal promises will protect your deposit. Only written contract terms and notices count.
- Waiving contingencies without a plan for inspection, appraisal, or financing risk.
- Forgetting to confirm that escrow received your funds.
- Ignoring neighborhood-level norms. Your strategy should match current offer patterns in Everett and nearby areas.
Ready to move in Everett?
A clear deposit plan can make the difference between winning the home and taking on unnecessary risk. If you want help crafting the right earnest money and contingency strategy for your goals, the Milaina West Group is here to guide you. Our team combines local market insight with organized, concierge-level support so you can move with confidence.
FAQs
How much earnest money should I offer on an Everett home?
- Start with local norms. Many buyers use 1,000 to 5,000 dollars for lower-priced homes or about 1 to 3 percent of the price for higher-priced or competitive listings, adjusting for current market conditions.
Is my earnest money refundable if the inspection reveals issues?
- Usually yes, as long as you follow the inspection contingency process and send the required notice within the inspection period defined in your contract.
What happens to earnest money if the sale falls through?
- If you terminate under a valid contingency and follow the contract’s procedures, the deposit is typically refunded; if you default without justification, the seller may be entitled to keep it under the remedies clause.
Can I wire my earnest money to escrow?
- Yes. Many buyers wire funds. Use secure, verified instructions from the escrow or title company and confirm receipt in writing, and always verify by phone to a known number to avoid wire fraud.
What if I cannot get financing by the deadline?
- If your contract includes a financing contingency and you send timely written notice that you cannot obtain financing as required, your deposit is usually refundable, subject to the contract’s terms.
