Quick Answer
Earnest money is the good-faith deposit you put up when your offer is accepted, and in Texas it is typically 1% to 3% of the price, about $3,000 to $9,000 on a $300,000 home. The title company holds it and credits it toward your purchase at closing. If the deal falls through on a valid contingency, financing, inspection, or appraisal, you get it back. I structure the deposit to strengthen your offer without draining your cash-to-close. Ask Patrick how much earnest money to offer.
Earnest money is a good faith deposit you make when your offer is accepted. In Texas, it is typically 1-3% of the purchase price. The deposit is applied to your down payment at closing. If the deal falls through due to a contingency (inspection, financing, appraisal), you get it back.
How Much Earnest Money to Put Down
In Texas, $1,000 to $10,000 is common depending on the home price. For a $300K home, $3,000-$6,000 (1-2%) is standard. In competitive situations, a larger earnest money deposit can strengthen your offer. The amount is negotiated between buyer and seller. Your agent will advise on what is appropriate for your market.
Is Earnest Money Refundable?
Yes, earnest money is refundable if you terminate during the option period or if a contingency is not met (financing falls through, inspection reveals issues, appraisal comes in low). It is not refundable if you simply change your mind outside of contingencies. The earnest money is held by a title company or escrow agent, not by the seller directly.
Ask Patrick about earnest money
Get a straight answer on how much earnest money to offer in Texas and how it protects you.
