One of the first questions buyers ask when they are getting ready to make an offer is how much earnest money they should put down.
And it makes sense. You want your offer to look strong, but you also do not want to put yourself in a position where you are taking on more risk than necessary.
We walk through this with buyers all the time in Glen Ellyn, Wheaton, Lombard, and Winfield, and there are definitely some patterns worth understanding.
What Earnest Money Actually Does
Earnest money is a deposit you submit once your offer is accepted.
It shows the seller you are serious and gives them some level of protection if you were to walk away from the contract for a reason that is not covered.
If everything moves forward, that money is applied toward your purchase at closing.
What We Typically See Buyers Put Down
There is no fixed number, but there are ranges we see consistently.
For lower-priced homes, it is often a few thousand dollars.
For mid-range homes, it is usually around one percent of the purchase price.
For higher-end homes or more competitive situations, it can be closer to one to three percent.
The more competitive the situation, the more buyers sometimes increase this amount to stand out.
When You Have to Deliver It
Most contracts require earnest money to be delivered shortly after your offer is accepted.
Typically within one to three days.
This is something you want to be prepared for ahead of time, especially if you are writing offers in a competitive situation.
How Your Deposit Is Protected
This is the part that matters most.
Earnest money is usually protected by contingencies in your contract, including:
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inspection
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financing
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appraisal
As long as you follow the timelines and the terms, your deposit is generally protected.
Where buyers run into issues is when deadlines are missed or contingencies are waived without fully understanding the risk.
Should You Increase Earnest Money to Win
Sometimes it helps, but it is not always necessary.
We often help buyers strengthen their offer in other ways without increasing their risk.
That might include:
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tightening timelines
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improving terms
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being flexible on certain conditions
The Right Approach
There is no one-size-fits-all number.
The right earnest money amount depends on:
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the home
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the level of competition
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your comfort level
Let’s Talk Through Your Offer Strategy
If you are preparing to make an offer, we would be happy to walk through what makes sense for your situation and help you structure something that is both competitive and smart.
FAQs
How much earnest money is typical in the western suburbs?
Most buyers put down around one percent, but it varies based on price point and competition.
Is earnest money refundable?
Yes, if you follow contingency timelines and contract terms.
Does earnest money go toward the purchase price?
Yes, it is credited at closing.
