How much should I offer as earnest money?
Around 1%–3% of the price is common, but it's strategy, not rule: a larger deposit signals commitment in competitive moments, and it's all credited back at closing. With contingencies intact, more deposit doesn't mean more risk — it means more credibility.
The common range is around 1% to 3% of the purchase price — but the right number is a strategic choice, not a rule, and it moves with the situation.
What the amount signals
Sellers read the deposit as commitment made visible — it's one of the four pillars of a strong offer. In multiple-offer moments, a larger deposit is one of the cheapest ways to strengthen your position, because unlike a price increase, this money comes back to you at closing.
Why bigger isn't automatically riskier
Your deposit is protected by your contingencies: cancel through a protected exit and it returns regardless of size. The real risk variable is deadlines, not dollars — a small deposit with blown deadlines is in more danger than a large one with protections intact. So sizing up while your protections stand is credibility, purchased cheaply. And remember the frame: it's credited toward your costs at closing — early money, not extra money.
How we'll pick the number
Four inputs: the competitive temperature, what sellers in that price range expect, your liquidity (the funds need to wire within days of acceptance), and the strength of the protections wrapped around it. In a quiet negotiation, standard is fine. In a contested one, the deposit is a lever — and we'll decide consciously whether to pull it.
The amount is table stakes; the protections around it are the actual game. Both get decided before the offer goes out, never after.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.