What Is Earnest Money in Washington State Real Estate?

What Is Earnest Money?

Earnest money is a deposit made by a buyer when submitting an offer on a home.

It demonstrates:

• Serious intent
• Financial commitment
• Good faith toward the transaction

How Much Earnest Money Is Typical?

Amounts vary depending on:

• Purchase price
• Market conditions
• Buyer competition

In Tacoma, earnest money often ranges from 1%–3% of the purchase price.

Where Is Earnest Money Held?

Funds are usually held in escrow until closing.

Can Buyers Lose Earnest Money?

Potentially, yes.

If buyers violate contract terms without protection from contingencies, earnest money may be at risk.

Why Earnest Money Matters

For sellers, strong earnest money can strengthen an offer.

For buyers, understanding timelines and contingencies is critical.

Questions About Buying or Selling in Tacoma?

I’d be happy to guide you through the Washington real estate process.

Jaryd Ruffner
eXp Realty
253-686-6356