Wondering how much earnest money you really need to make a strong offer in Westerville? You are not alone. This small but mighty deposit can boost your offer and protect you when it is handled the right way. In this guide, you will learn what earnest money is, common amounts in Central Ohio, when it is refundable, and how to plan your deposit so you feel confident. Let’s dive in.

Earnest money basics

What earnest money is

An earnest money deposit is your good-faith cash that accompanies an offer to buy a home. It shows the seller you are serious and, if you close, it is credited toward your down payment and closing costs. The purchase agreement sets the amount, due date, where funds are held, and when money is refundable or forfeited.

Where funds are held in Ohio

In most Central Ohio deals, the deposit sits in an escrow or trust account until closing or termination. The escrow holder is typically a brokerage, title company, or attorney named in the contract. Ohio licensees must handle client funds under state rules, and deposits are generally made promptly per the contract timeline.

How it protects you and the seller

Earnest money gives sellers confidence to accept your offer and pause other showings. If a buyer breaches without a valid reason under the contract, sellers may keep the deposit as liquidated damages if the contract allows. For buyers, contingencies written into the agreement are the key protection that can make the deposit refundable when you need to exit for a covered reason.

Typical Westerville amounts

First-time buyer ranges

For many entry-level homes in Westerville and across Central Ohio, deposits of 1,000 to 2,500 dollars are common. This shows commitment without tying up more cash than necessary while you work through inspections and financing.

Move-up and competitive situations

For mid-range homes, 1 to 2 percent of the purchase price is typical. In competitive situations or on certain investment properties, some buyers offer 3 percent or more, or agree to increase the deposit after acceptance. Your exact amount should fit your budget and overall offer strategy.

When you pay and key deadlines

Most contracts call for earnest money with the offer or within 24 to 72 hours of acceptance. Inspection periods are often 7 to 14 days in Central Ohio. Financing timelines commonly run 21 to 30 days, and many closings are targeted for 30 to 45 days after contract. Your purchase agreement should spell out each date and accepted payment form.

Contingencies that protect your deposit

• Inspection: You can terminate or renegotiate if unacceptable issues are found and no agreement is reached on repairs or credits within the inspection window.
• Financing: If you cannot secure financing on the agreed terms within the timeframe, you may terminate and recover the deposit.
• Appraisal: If the appraisal comes in low and there is no resolution, an appraisal contingency can allow termination.
• Title: If title defects cannot be cured, you may be able to exit and receive a refund.

Refunds, forfeitures, and disputes

Your deposit is usually refundable if you cancel within a valid contingency period or if the seller cannot meet contract conditions such as delivering clear title. You may forfeit the deposit if you miss deadlines or walk away after contingencies have expired. If there is a disagreement, escrow holders typically keep funds in place until both parties agree or there is mediation, arbitration, or a court order per the contract.

Planning your deposit

Aim for a deposit that supports your offer strength and your comfort level. First-time buyers often choose 1,000 to 2,500 dollars. Move-up buyers commonly target 1 to 2 percent. In a tight Westerville market, a higher amount or a structured increase after acceptance can help your offer stand out without taking on unnecessary risk.

Payment methods

Accepted forms often include certified funds, wire transfers, cashier’s checks, or an escrow transfer as named in the contract. Personal checks are sometimes accepted but may take longer to clear. Always obtain a written receipt and confirmation that funds were placed into the designated escrow or trust account.

If cash is tight

You can keep your deposit modest and improve other terms. Consider a stronger pre-approval, shorter but realistic inspection and financing timelines, flexible possession or closing, or focused repair requests. Avoid waiving important protections solely to conserve cash.

Documentation to keep

Your contract should clearly name the escrow holder, deposit amount, due date, where funds will be held, and the rules for release. Keep copies of your deposit receipt, escrow confirmation, and any notices or addenda involving contingencies or deadlines. Clear paperwork makes disputes less likely and easier to resolve.

What happens at closing

If the transaction completes, your earnest money is credited toward what you owe at closing. If the deal terminates under a valid contingency, the escrow holder releases funds per the contract instructions.

Disputes and resolution

Most Ohio contracts describe how disagreements are handled. The first step is to follow the contract instructions. If you cannot agree, the escrow holder usually continues to hold funds until there is a signed agreement to release, mediation or arbitration if required, or a court order. Timelines vary, so plan for a hold if there is a dispute.

Quick buyer checklist

• Confirm deposit amount, due date, and acceptable payment method in the contract.
• Mark inspection, appraisal, and financing deadlines on your calendar.
• Keep proof of payment and escrow placement.
• Communicate any contingency notices in writing and on time.
• Review liquidated damages language with your agent so you understand potential risks.

Ready to make a confident offer in Westerville? You now know how earnest money works, the typical amounts to expect, and the timelines to track so your deposit supports your goals. If you want local guidance tailored to your budget and timeline, connect with Shaun Hood to plan your next steps.

FAQs

When do Westerville buyers pay earnest money?

• Most contracts require payment when the offer is accepted or within 24 to 72 hours, as stated in the agreement.

How much earnest money is typical for first-time buyers?

• Many first-time buyers use 1,000 to 2,500 dollars in Central Ohio, adjusted for price point and competition.

Is earnest money refundable if the inspection finds issues?

• Yes, if you terminate within the inspection window under the contract because repairs or credits cannot be agreed upon.

What happens if the appraisal is lower than the price?

• You can renegotiate, bring extra cash to cover the gap, or terminate if your contract includes an appraisal contingency and you follow the process.

Who holds the earnest money in Central Ohio deals?

• Typically a brokerage trust account, a title or escrow company, or an attorney, as named in your purchase agreement.