Found a home you love in Bremerton and now the seller is asking for earnest money? It is normal to wonder how much to offer, where the deposit goes, and what happens if plans change. You want to write a strong offer without risking money you may need later. In this guide, you will learn how earnest money works in Washington, what is typical in Kitsap County, how your deposit is protected, and smart steps to keep your offer competitive and safe. Let’s dive in.
What earnest money is
Earnest money is your good‑faith deposit that accompanies an accepted offer. It shows the seller you are serious about buying. In Washington, the amount, deadline, who holds the deposit, and how it can be released are all set by your Purchase and Sale Agreement. Many Kitsap buyers use the standard forms common to the area, which are supported by Washington REALTORS.
If the sale closes, your earnest money is credited to your closing funds. If the sale does not close, the contract controls whether the money is returned to you or released to the seller. That decision depends on contingencies, deadlines, and notices in your agreement.
How it works in Washington
Most Washington offers give you a short window after “mutual acceptance” to deliver the deposit. Contracts commonly state delivery within a set number of business days, often 1 to 3. The exact timing appears in the agreement and needs to be followed carefully.
The deposit is usually held by a neutral escrow or title company named in the contract. It can be held by a broker’s trust account, but in Kitsap it is common to use escrow/title. These companies follow written instructions from the parties and release funds only as authorized by the contract.
Where your funds are held
Reputable title and escrow firms maintain trust accounts and strict accounting procedures. National providers with a local presence, like First American and Stewart Title, offer buyer resources that explain the escrow process. You should receive a written receipt showing the amount, date, and file reference when your deposit is received.
Wire it safely
Real estate wire fraud is a real risk. Before sending any funds, verify wiring instructions directly with your escrow officer using a known phone number and never from a link in an email. Treat last‑minute changes as suspicious and confirm in person or by phone. The FBI’s guidance on real‑estate scams outlines common red flags and steps to protect your money.
How much to offer in Kitsap
Across many markets, buyers often offer 1% to 3% of the purchase price as earnest money. In hotter conditions, some buyers increase deposits to 2% to 5% to stand out. On a $500,000 home, 1% equals $5,000; more competitive situations may see 2% to 3%.
Local norms vary by season and neighborhood. Inventory, days on market, and multiple‑offer frequency influence how much is considered strong in Kitsap. Check the latest Kitsap County snapshot from the Northwest Multiple Listing Service for supply and demand trends before you decide.
Factors that shape deposit size in Bremerton and surrounding areas:
- Market pace: Lower inventory and faster sales often lead to larger deposits.
- Seller priorities: Some value a bigger deposit; others prefer shorter timelines or higher price.
- Price tier: Entry‑level homes may see flat dollar deposits; higher‑priced homes often use percentages.
- Your profile: Cash or well‑preapproved buyers may be more flexible; if you need financing, align the deposit with your comfort level and contingencies.
Protections that keep your deposit safe
Your contract’s contingencies and timelines protect your earnest money. If you cancel for a reason allowed by the agreement and follow the notice rules, the deposit is generally returned to you.
Inspection contingency
An inspection or investigation period gives you time to evaluate the home. If you cancel within the agreed period and provide proper notice, your deposit is typically refundable under the contract. Keep the deadline on your calendar and submit any notices in writing.
Financing and appraisal
If you have a financing contingency, you are protected if a good‑faith effort to secure your loan falls short within the contingency period. Low appraisals may also trigger protection, depending on your financing or appraisal terms. Deadlines matter, so track them closely.
Title review
Washington contracts provide time to review the title report. If a significant title issue appears that the seller cannot or will not resolve, you may be able to cancel and receive your deposit back under the contract’s title provisions.
When you could forfeit earnest money
Earnest money can be at risk if you breach the contract after contingencies are removed or expire. Common examples include walking away without contractual basis, failing to deposit earnest money on time, or failing to close after all conditions are satisfied. The exact outcome depends on your agreement, which controls remedies and release of funds.
If there is a dispute, escrow will not choose a side. They follow written instructions from both parties or hold funds while the parties resolve the issue through negotiation, mediation, arbitration, or legal action as described in the contract. For general guidance on Washington forms and dispute provisions, visit Washington REALTORS.
Step‑by‑step for Kitsap buyers
Follow these steps to make a confident offer and protect your deposit.
Before you write an offer
- Ask your agent for current Kitsap norms: typical earnest money percentages, inspection timelines, and multiple‑offer trends. Check NWMLS market updates for context on inventory and days on market.
- Decide how much you can comfortably set aside for earnest money and how much risk you can tolerate.
- Get a strong preapproval and confirm your lender’s appraisal and underwriting timelines.
In your offer
- Specify the exact deposit amount, the deadline to deliver it, and the escrow/title company that will hold the funds.
- Set realistic contingency periods and know the notice requirements. Short timelines can be competitive, but only if they are achievable.
- Coordinate with your lender and inspector in advance so you can meet the deadlines you propose.
After mutual acceptance
- Deliver funds on time and get a written receipt from escrow/title showing amount, date, and file number.
- Verify wiring instructions by phone using a trusted number, and treat last‑minute changes as suspicious.
- Calendar every contingency deadline and provide any notices in writing before they expire.
- Keep organized records: the contract, deposit receipt, inspection reports, and all notices.
If a problem arises
- Notify your agent and escrow officer in writing right away.
- Ask the seller’s side to cite the contract section that applies and coordinate with escrow on any release instructions.
- Follow the dispute‑resolution pathway in your contract, which may include mediation or arbitration.
Competitive strategies with less risk
You can strengthen your offer without taking on unnecessary exposure.
- Increase your deposit within your comfort zone while keeping key protections.
- Shorten contingency periods only if you have inspectors and lender lined up.
- Consider a pre‑inspection on homes that allow it, so you can reduce uncertainty without waiving protection blindly.
- Use lender pre‑underwriting to show strength on financing timelines.
- Offer flexible closing or limited post‑closing occupancy if it helps the seller, instead of removing essential contingencies.
Earnest money vs. down payment
These are not the same. Earnest money is a deposit paid soon after your offer is accepted. It is credited to you at closing. Your down payment is the total cash you bring to close, minus any earnest money credits. Closing costs are separate charges for lender, escrow, title, and recording services. Your final cash to close is your down payment plus closing costs, less credits.
Local escrow partners and process
Title and escrow companies operating in Kitsap follow strict trust‑account rules and written instructions. Explore buyer resources from established firms like First American and Stewart Title to understand what happens from mutual acceptance to closing. These overviews explain how funds are handled, how closing documents are prepared, and what to expect on signing day.
The bottom line for Bremerton buyers
Earnest money is a useful way to show sellers you mean business, and it becomes part of your closing funds. In Kitsap, the right amount depends on current market speed and your comfort with risk. Protect yourself by using clear contingency timelines, sending funds only to verified escrow/title accounts, and keeping every deadline in sight.
If you want help shaping a strong, safe offer in Bremerton or anywhere in Kitsap County, reach out to Scott Ahern. Our team offers local market insight, process‑driven guidance, and responsive support from first showing to closing day.
FAQs
What is earnest money in Washington and when is it due?
- It is a good‑faith deposit paid soon after mutual acceptance, with the delivery deadline and amount set by your Purchase and Sale Agreement.
How much earnest money is typical in Kitsap County?
- Many buyers offer 1% to 3% of price, adjusting up in competitive situations; check current competitiveness using NWMLS market updates.
Who holds my earnest money and how do I confirm?
- It is usually held by a neutral escrow or title company named in your contract; get a written receipt from escrow/title confirming the amount and file number.
Which contingencies protect my deposit?
- Inspection, financing, appraisal, and title review commonly protect you if you cancel within deadlines and give proper written notice.
What happens if I back out after waiving contingencies?
- If you cancel without a contractual basis after protections expire, the seller may claim your deposit per the agreement’s remedies.
How is earnest money different from my down payment?
- Earnest money is an early deposit credited at closing, while your down payment is the total cash you bring to close, separate from closing costs.
How do I avoid wire‑transfer fraud with my deposit?
- Verify wiring instructions by phone using a known number and review the FBI’s real‑estate scam guidance for red flags.
What proof should I keep to get my deposit back?
- Keep the escrow receipt, the signed contract, inspection or financing notices, and any written cancellation delivered within deadlines.
Can the seller keep my earnest money if we disagree?
- Escrow will hold the funds until both parties authorize a release or the contract’s dispute process resolves it, such as mediation or arbitration.
