Earnest Money In Washington: Sammamish Buyer Guide

You work hard to win a Sammamish home. In a fast Eastside market, your earnest money shows sellers you are serious, yet you never want to put that deposit at needless risk. The good news is you can write a competitive offer and still protect your funds with the right plan. In this guide, you’ll learn how earnest money works in Washington, what’s typical in Sammamish, which contingencies protect you, and practical steps to stand out without overexposing your deposit. Let’s dive in.

Earnest money basics in Washington

Earnest money is your good faith deposit. After a seller accepts your offer, you deliver funds to show commitment. If you close, the deposit applies to your purchase. If the deal ends earlier, the contract controls what happens to the funds.

In Washington, the Purchase and Sale Agreement from NWMLS sets who holds the deposit, when it is due, and how it can be released. It also spells out deadlines for contingencies and closing.

Who holds your deposit

Your deposit is usually held by a neutral escrow or title company that will handle closing. Sometimes a brokerage trust account is named on the contract. While a listing broker can hold funds at first, best practice is to place earnest money with a neutral escrow or title company.

How you deliver earnest money

You can wire the funds, bring a cashier’s check to escrow, or deliver a certified check as directed in the contract. Sellers often expect delivery within a short window after mutual acceptance, so plan ahead.

Protect yourself from wire fraud. Always verify wire instructions by calling the escrow or title company using a phone number you know is correct, not a number from an email link. Ask for written confirmation when escrow receives your deposit.

How much earnest money in Sammamish

Amounts vary by price point and competition. In balanced conditions, many buyers use 1% to 3% of the purchase price. In competitive Sammamish offers, buyers often show strength with $5,000 to $25,000 or more, especially at higher price bands. Larger deposits can help your offer stand out, yet they increase potential loss if you default after removing protections.

Match your deposit to your comfort level and the listing activity. A thoughtful offer can combine a reasonable deposit with other seller-friendly terms so you stay competitive without taking on more risk than you want.

Contingencies that protect your deposit

Contingencies are your built-in protections. If you act within the stated period and follow the contract steps, you usually have the right to terminate and receive your earnest money back.

Inspection or feasibility

Typical inspection windows run 3 to 14 days. In strong competition, buyers often shorten to 3 to 5 days. If the inspection reveals issues you are not comfortable with, you can cancel within the period and keep your deposit, or you can negotiate repairs or credits. If you waive inspection or remove it early, you take on more risk.

Financing contingency

Most financed offers include a financing contingency of 17 to 30 days. If your lender cannot approve the loan and you provide the required lender denial on time, you can usually cancel and recover the deposit. If you miss the deadline or remove the contingency and later cannot close, the seller may claim the funds.

Appraisal concerns

Appraisals are commonly completed 7 to 14 days after mutual acceptance and are tied to loan approval. If the appraisal is low, you can negotiate, bring in more cash if you choose, or cancel if your contract includes an appraisal or financing protection that allows termination. If you waived those protections, you may have to cover the gap to close.

Title and HOA review

You often have 3 to 10 days to review title exceptions and HOA documents. If you find a problem and the seller cannot or will not cure within contract timelines, you may have the right to cancel and keep your deposit.

Sammamish offer timeline example

Every contract is specific, but here is a simple flow so you can plan your steps.

• Day 0: Offer accepted. Earnest money is due per the contract.
• Days 1–3: Deposit delivered to escrow. Your inspector is scheduled and your lender starts processing.
• Days 3–10: Inspection and investigations. You either negotiate repairs or terminate within the inspection window.
• Days 7–21: Financing period. Appraisal and underwriting wrap up. You obtain a loan commitment or notify the seller in writing if you cannot proceed.
• Day 30: Target closing date. All contingencies are satisfied or removed. Earnest money is applied to your closing funds.

Note how deadlines are written. If a contract says “X days after mutual acceptance,” the clock starts on the day you and the seller sign. Watch for whether the contract counts business days or calendar days and follow the exact notice steps the forms require.

Write a competitive Sammamish offer

You can compete in Sammamish without putting your deposit at unnecessary risk. Use these practical steps.

1) Pre-offer preparation

• Get a strong local preapproval, not just a prequalification. Include proof of funds for the deposit and down payment.
• Name a reputable local escrow or title company in your offer. Sellers value familiarity and smooth closings.

2) Size your deposit with intent

• In low-inventory moments, consider a larger deposit to signal strength, especially for higher-price homes.
• If your risk tolerance is lower, pair a modest deposit with other seller-friendly terms like a shorter closing timeline or flexible possession.

3) Tailor contingencies, do not dump them

• Shorten your inspection to 3 to 5 days if needed, but keep the contingency. You can limit requests to health and safety items to reduce friction.
• Consider appraisal gap language that caps how much you will cover above a low appraisal. Avoid fully waiving appraisal or financing protections unless you understand the exposure.
• For conventional loans, a 21 to 30 day financing window is common. Confirm your lender can meet it.

4) Deliver and verify fast

• Send earnest money promptly and confirm receipt with escrow in writing.
• Always verify wire instructions by phone using a known number.

5) Communicate and document

• Put every notice in writing and use the proper forms. Keep copies of inspection reports, lender updates, and title documents.
• When you negotiate repairs, use a clean addendum with clear deadlines. Avoid relying on verbal agreements.

6) Compete in multiple-offer situations

• If you cannot raise the deposit, highlight non-monetary strengths: flexible closing date, rent-back for the seller if they need time to move, or a clean, well-documented file.
• An escalation clause can help you win without overpaying. Use a clear cap and include proof of funds.

7) Reduce risk if you are unsure

• Consider a smaller upfront deposit combined with strong preapproval and tight timelines.
• Discuss creative structures with your broker, such as increasing earnest money after the inspection, once you feel more confident.

If the deal unravels

Sometimes buyers and sellers disagree about who should receive the deposit. The NWMLS forms spell out how funds can be released and the steps required. If you default after removing contingencies, the seller may keep the deposit as liquidated damages, depending on the contract language. If you cancel under a valid contingency and provide the required documentation on time, you typically receive the deposit back.

If there is a dispute, escrow may require a mutual release, or it may use an interpleader or claims process. Contracts often call for mediation or arbitration before litigation. Preserve your paper trail. Keep inspection reports, lender denial letters, and written notices that show you acted within the contract.

Common mistakes to avoid

• Skipping wire verification and sending funds to a fraudulent account.
• Waiving inspection without fully understanding the home’s condition.
• Missing contingency deadlines or removing protections too early.
• Failing to name a neutral escrow holder or to match delivery timing in the offer.
• Relying on verbal understandings instead of signed addenda.

Final thoughts for Sammamish buyers

Your earnest money should work for you, not against you. In Sammamish, a smart deposit size, tight timelines, and well-shaped contingencies can help you compete for the home you want while keeping your funds protected. Lean on local forms, follow the deadlines, and document every step.

Ready to craft a confident offer? Reach out to Stacy Hecht for a focused strategy that fits your goals in the Sammamish market.

FAQs

What is earnest money for a Sammamish home purchase?

• It is a good faith deposit you deliver after acceptance that applies to your closing funds or is disbursed under the contract if the deal ends earlier.

How much earnest money should I offer in Sammamish?

• Many buyers use 1% to 3% of price in balanced conditions; competitive offers often show $5,000 to $25,000 or more, depending on price and activity.

Are earnest money deposits refundable in Washington?

• Yes, if you cancel within a valid contingency period and follow the contract steps, you typically receive your deposit back; outside protections, the seller may claim it.

How soon do I need to deliver earnest money after acceptance?

• Your contract sets the deadline; many offers require delivery within 1 to 3 days, so plan for fast wire or certified funds.

Who usually holds earnest money in King County?

• A neutral escrow or title company typically holds the funds, though a brokerage trust account may be named in the Purchase and Sale Agreement.

What if the appraisal comes in low on my Sammamish home?

• You can negotiate price, bring extra cash within any agreed appraisal gap, or cancel if your appraisal or financing protection allows it and you act on time.