Buying in West Seattle and wondering how much earnest money to put down and when it’s due? You are not alone. In our market, the right deposit and timing can help you win the home while keeping your risk in check. This guide explains typical amounts for 98126, key deadlines, what protects your deposit, and practical tips to coordinate with your lender and escrow. Let’s dive in.
What earnest money covers in Washington
Earnest money is a good-faith deposit that shows the seller you are serious. In Washington, the funds are typically held by the escrow/title company named in your purchase and sale agreement. Unless the contract says otherwise, your deposit is credited toward your down payment and closing costs at closing.
The amount is negotiable. It is not a fee you “lose” if you close. It becomes part of your total funds to close, similar to a prepayment you make shortly after your offer is accepted.
How much earnest money in 98126
In many Seattle-area transactions, the common starting range is about 1 to 3 percent of the purchase price. In competitive West Seattle pockets within 98126, buyers sometimes offer higher deposits to strengthen their offers, especially when inventory is tight.
Quick examples at common price points
- $500,000 home: 1% is $5,000; 2% is $10,000.
- $800,000 home: 1% is $8,000; 2% is $16,000.
- In hot, multiple-offer scenarios, some buyers offer larger flat amounts, such as $20,000 to $50,000 or more, depending on price and risk tolerance.
What influences your amount
- Price of the property and your available liquid funds.
- Market conditions in the specific neighborhood and price band.
- The strength of the rest of your offer terms (cash, inspection plans, closing timeline).
- Your personal risk tolerance, since larger deposits increase exposure if a deal falls apart outside your contingency protections.
- Seller expectations signaled by the listing broker.
When earnest money is due
Most local contracts set a short deadline after mutual acceptance. A common timeframe is within 3 business days unless your agreement states otherwise. Business days typically exclude weekends and federal or state holidays. Always follow the exact timeline written in your signed contract.
Funds are usually deposited with the escrow or title company rather than with a broker. Escrow holds them until the transaction closes or both parties give written instructions to release the funds.
Delivery methods and wire safety
- Cashier’s check or certified check delivered to escrow.
- Bank wire transfer to the escrow/title company’s trust account.
- Before wiring, always call the escrow company at a known phone number to verify instructions. Do not rely on emailed wire details without verbal confirmation. Watch for last-minute email changes and verify by phone.
Practical timeline example
- Day 0: Offer accepted and signed by both parties (mutual acceptance).
- Day 1–3 business days: You deliver earnest money to the named escrow/title company by check or wire, according to the contract.
- During contingency periods: You complete inspections, appraisal, and loan steps. If you cancel within a valid contingency period following the contract’s notice rules, your deposit is typically refundable.
Refunds, contingencies, and release
Contingencies are your safety net. If you cancel for a contractually allowed reason within the agreed timeline and deliver proper written notice, your earnest money is commonly refundable.
Common protections include:
- Inspection contingency: Cancel within the inspection window after following notice procedures.
- Financing contingency: If loan approval is denied despite good-faith efforts, you can terminate within the contingency period.
- Appraisal contingency: If the appraised value is below the contract price, you may have options to cancel per the appraisal language.
- Sale-of-home contingency: If you must sell your current home first and it does not happen by the contingency deadline, you may be able to terminate per the contract terms.
If a buyer defaults outside the allowed terms, many contracts let the seller retain the earnest money as liquidated damages. Escrow does not release funds without mutual written authorization or a court/arbitration order. Disagreements can trigger the dispute-resolution process outlined in the contract.
Common pitfalls to avoid
- Missing the deposit deadline in your contract.
- Failing to provide written termination during a contingency window.
- Wiring funds without verbally confirming instructions with escrow.
- Delivering funds to a party not authorized by the contract.
Strategy tips for competitive West Seattle offers
Winning in 98126 often comes down to strong preparation and clean execution. Here is how to align your deposit with a winning offer strategy.
Before writing the offer
- Get a written lender preapproval, not just a prequalification.
- Prepare proof of funds for your earnest money and down payment.
- Discuss risk tolerance with your agent so your deposit and contingencies match your comfort level.
Coordinating the deposit
- Confirm the escrow/title company and how they want to receive funds.
- If timing is tight, set up a cashier’s check or same-day wire availability with your bank.
- Verify wire instructions by calling the escrow company at a trusted number.
Working with your lender
- Share mutual acceptance and all contingency dates on Day 0.
- Ask exactly what documents the lender needs and when appraisals can be ordered.
- Keep your agent and escrow updated on appraisal timing, since results can affect contingency decisions.
Balancing strength and safety
- Larger earnest money with quick delivery signals commitment but raises risk if you later remove protections.
- Moderate deposit plus an escalation clause can show willingness to pay more without overexposing your funds.
- Waiving appraisal or inspection can be effective in certain cases but increases risk. Consider these only if you have the cash reserves and guidance to support them.
A quick note for sellers in 98126
If you are reviewing multiple offers, earnest money is one indicator of buyer commitment. A larger, promptly delivered deposit can reduce uncertainty, especially if other terms are strong. Make sure escrow and release instructions are clear in the contract. If a dispute arises, escrow will follow the written agreement and may require mutual instructions or a court/arbitration order to release funds.
Final thoughts
The right earnest money strategy in 98126 balances competitiveness with protection. Know your timelines, align your deposit with market conditions, and keep communication tight among your agent, lender, and escrow. If you do that, you can compete confidently while safeguarding your investment.
Ready to talk strategy tailored to your West Seattle goals? Connect with the concierge-level team at Hines Group for guidance on deposits, timelines, and competitive offer structure.
FAQs
How much earnest money do buyers usually put down in 98126?
- Typical starting range is 1 to 3 percent of the purchase price, with higher deposits used in multiple-offer situations to strengthen an offer.
When is earnest money due after my offer is accepted in Washington?
- Many local contracts require delivery within 3 business days of mutual acceptance, unless your signed agreement specifies a different deadline.
Who holds my earnest money in a Seattle-area transaction?
- The named escrow or title company typically holds your deposit in a trust account until closing or written release instructions are provided.
When can I get my earnest money back if I cancel?
- If you cancel within an active contingency period and follow the contract’s written notice procedures, your deposit is usually refundable.
What happens if the buyer and seller disagree about releasing earnest money?
- Escrow needs mutual written instructions or a court/arbitration order. Unresolved disputes follow the contract’s dispute-resolution procedures.
