Earnest money in Washington typically runs 2% to 5% of the purchase price, is due within about two days of mutual acceptance, and is held in a brokerage trust or escrow account until closing — at which point it's credited toward your down payment. You don't pay it twice.
You get it back if you exit the contract using a contingency, properly, within its deadline. You lose it if you walk away without contractual grounds, miss a contingency deadline, or waive a protection and then can't perform. In most Washington purchase agreements, the earnest money is the seller's sole remedy if a buyer defaults — which is the good news and the reason the number matters.
How much earnest money should I offer in Washington?
The 2–5% range is the norm, but the number is strategic rather than fixed. On an $800,000 Eastside purchase that's $16,000 to $40,000.
| Purchase price | 2% | 3% | 5% |
|---|---|---|---|
| $700,000 | $14,000 | $21,000 | $35,000 |
| $900,000 | $18,000 | $27,000 | $45,000 |
| $1,200,000 | $24,000 | $36,000 | $60,000 |
| $1,500,000 | $30,000 | $45,000 | $75,000 |
What moves the number up or down:
Competition. In a market where Bellevue homes are selling in a median of about eight days, a larger deposit is a credible signal that you're serious and financially solid. It's one of the cheapest ways to strengthen an offer, because if you close you get it back as part of your down payment.
Your own risk tolerance. A larger deposit is only cheap if you're confident you'll close. If your financing is complicated or your timeline is tight, a smaller deposit limits your exposure.
Seller circumstances. A seller who has already purchased their next home is more sensitive to a failed transaction than one with flexible timing, and will weigh the deposit more heavily.
A useful frame: offer the largest amount you would be genuinely comfortable losing in a worst case, and not a dollar more.
When is earnest money at risk?
Four situations account for nearly all forfeited deposits in Washington.
You back out without contractual grounds. Changing your mind, finding a home you like better, or deciding the price was too high are not contractual grounds. If you're outside your contingency periods and you walk, the deposit is generally the seller's.
You miss a contingency deadline. This is the most common and the most avoidable. Contingencies expire on specific dates. An inspection contingency that lapses at 9 p.m. on day seven provides no protection at 9:01. Deadlines in Washington purchase agreements are strictly enforced.
You waived a protection and then couldn't perform. In competitive situations buyers sometimes waive financing or appraisal contingencies to strengthen an offer. If you waive financing and your loan then falls through, you're in default — and your deposit is exposed.
You released the earnest money early. Some sellers request early release of earnest money as a term of the offer. Once released to the seller, recovering it is a legal matter rather than an escrow matter, and considerably harder. Be deliberate about agreeing to this.
What protects your earnest money?
Contingencies, used properly and on time. The standard protections in a Washington purchase agreement:
| Contingency | What it protects against | Typical window |
|---|---|---|
| Inspection | Discovering material problems with the property | 5–10 days from mutual acceptance |
| Financing | Your loan not being approved | 21–30 days, varies |
| Appraisal | The home appraising below the purchase price | Tied to the financing timeline |
| Title review | Liens, easements or defects on title | Typically 5–10 days from receipt of title commitment |
| Sale of buyer's home | Your current home not selling | Negotiated; often resisted in competitive markets |
| Neighborhood review | Conditions you discover about the surrounding area | Short, often 3–5 days |
Two rules that govern all of them:
Act inside the window, in writing. A verbal notice to an agent is not a contractual exercise of a contingency. It has to be documented and delivered the way the contract specifies.
Calendar every date the day you go under contract. Not the week of. The day of. Put each deadline in your phone with a reminder 48 hours ahead. The buyers who lose deposits are almost never the ones who made a bad decision — they're the ones who lost track of a date.
What happens to earnest money at closing?
It's credited toward your down payment and closing costs. If you put down $25,000 in earnest money and owe $200,000 at closing, you bring $175,000. The deposit was never an additional cost — it was a portion of your funds paid early.
If the purchase price is low enough that the earnest money exceeds what you owe at closing — rare, but it happens on cash purchases or with large deposits — the difference is refunded to you.
What if the seller defaults?
Less common, but it happens. If a seller fails to perform, the buyer's remedies typically include the return of earnest money and, depending on the contract terms, the possibility of specific performance — a legal action to force the sale — or damages.
This is territory where you want an attorney rather than only an agent. Washington purchase agreements are binding contracts, and the remedies available depend on the specific language in yours.
Frequently asked questions
How much earnest money is typical in Washington State? Between 2% and 5% of the purchase price. On a $900,000 home that's $18,000 to $45,000. The amount is negotiable and is often used strategically — a larger deposit signals a stronger buyer in a competitive situation.
When do I have to pay earnest money? Typically within about two days of mutual acceptance, unless the purchase agreement specifies otherwise. Have the funds liquid and available before you write an offer, not after — waiting on a transfer from a brokerage account is a bad way to start a transaction.
Who holds the earnest money? A brokerage trust account or an escrow company, never the seller directly. It's held in trust and released according to the terms of the purchase agreement or by mutual written instruction.
Can I get my earnest money back if the inspection finds problems? Yes, if you have an inspection contingency and you exercise it in writing within the contingency period. If the period has expired, the contingency no longer protects you regardless of what the inspection found.
What happens to my earnest money if my loan is denied? If you have a financing contingency in force and your loan is denied for reasons covered by it, the deposit is generally refundable. If you waived the financing contingency to make your offer more competitive, the deposit is at risk.
Is earnest money the same as a down payment? No, but it becomes part of it. Earnest money is an early deposit showing good faith; it's held in escrow and credited toward your down payment at closing. The down payment is the total amount you're putting toward the purchase.
The deadlines matter more than the dollars
Almost every earnest money dispute we've seen traces back to a calendar, not a decision. A contingency that expired on Friday, a written notice sent Monday.
When you work with us, tracking those dates is our job — not something we hand you and hope you handle. If you'd like to talk through what a competitive offer looks like at your price point without putting more at risk than you should, we're happy to.
Schedule a buyer consultation →
Tribeca NW Real Estate serves buyers and sellers across Bellevue, Kirkland, Redmond, Issaquah, Bothell and the greater Seattle metro. 1,675 homes closed and $1B+ in transaction volume. 500+ five-star Google reviews and 375+ five-star Zillow reviews.
This article is general information, not legal advice. Purchase agreement terms and remedies vary. Review your specific contract with your broker and consult a real estate attorney for legal questions.
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