What is the earnest money deposit when buying?

Q: How much is the deposit?

The earnest money deposit is typically 1-3% of the purchase price. The exact amount may vary depending on local market norms and what is agreed upon in your purchase contract. For example, on a $350,000 home, you would typically deposit between $3,500 and $10,500.

Q: When is it due?

Your earnest money deposit is usually due within 1-3 business days after your offer is accepted. The exact deadline will be specified in your purchase agreement. > Note: Missing the deposit deadline can put your contract at risk. Have your funds ready to transfer as soon as your offer is accepted.

Q: Where does the money go?

Your deposit is held in an escrow account managed by the title company or escrow agent. Neither you nor Opendoor has access to the funds while they are in escrow. The money stays there until closing or until the contract is terminated.

Q: What happens if I back out without a contingency?

If you cancel the purchase after your contingency periods have expired or if you signed a contract without contingencies, you may forfeit your earnest money deposit to the seller. Review your contract carefully so you understand your deadlines.

Q: What happens to the deposit at closing?

At closing, your earnest money deposit is applied toward your closing costs and/or down payment. It is not an additional expense — it is money you have already put toward the purchase.

Updated March 2, 2026

Submit an earnest money deposit (EMD) to show you are serious about purchasing the home. This good-faith payment is a standard part of the homebuying process and protects both you and the seller once an offer is accepted.

How much is the deposit?

The earnest money deposit is typically 1-3% of the purchase price. The exact amount may vary depending on local market norms and what is agreed upon in your purchase contract.

For example, on a $350,000 home, you would typically deposit between $3,500 and $10,500.

When is it due?

Your earnest money deposit is usually due within 1-3 business days after your offer is accepted. The exact deadline will be specified in your purchase agreement.

Note: Missing the deposit deadline can put your contract at risk. Have your funds ready to transfer as soon as your offer is accepted.

Where does the money go?

Your deposit is held in an escrow account managed by the title company or escrow agent. Neither you nor Opendoor has access to the funds while they are in escrow. The money stays there until closing or until the contract is terminated.

Is my deposit refundable?

Your earnest money is refundable under certain conditions outlined in your purchase contract. Common contingencies that protect your deposit include:

Inspection contingency — you can cancel and get your deposit back if the home inspection reveals issues you are not willing to accept.
Financing contingency — if your mortgage is not approved, your deposit is returned.
Appraisal contingency — if the home appraises below the purchase price and you cannot reach a resolution, you can walk away with your deposit.

What happens if I back out without a contingency?

If you cancel the purchase after your contingency periods have expired or if you signed a contract without contingencies, you may forfeit your earnest money deposit to the seller. Review your contract carefully so you understand your deadlines.

What happens to the deposit at closing?

At closing, your earnest money deposit is applied toward your closing costs and/or down payment. It is not an additional expense — it is money you have already put toward the purchase.

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