Bellevue Earnest Money Guide for Confident Buyers

Buying on the Eastside moves fast, and one detail can make or break your offer: earnest money. If you are wondering how much to put down, when it is due, or how to keep it safe, you are not alone. A clear plan helps you compete without taking on unnecessary risk. In this guide, you will learn what earnest money is, typical Bellevue amounts and deadlines, how it is protected in Washington contracts, and practical tactics to strengthen your offer. Let’s dive in.

What earnest money is

Earnest money is your good-faith deposit after a seller accepts your offer. It shows you intend to close and gives the seller confidence to move forward. If the sale closes, your deposit is applied to your funds due at closing.

If you default without a contract reason, the seller may have remedies that can include keeping the deposit. Your rights and the seller’s remedies depend on the exact purchase agreement you sign. Small wording changes can affect timelines, notices, and whether the deposit is refundable.

Why sellers care

Sellers accept risk when they take a home off the market. Earnest money reduces that risk if a buyer backs out. In competitive Bellevue scenarios, a larger deposit or a quicker deposit timeline often signals a stronger, more serious offer.

Typical Bellevue amounts

In the Puget Sound region, deposits are usually a fixed amount or a percentage of the price. On the Eastside, common ranges include:

• Condos or lower-priced homes: roughly 3,000 to 10,000 dollars
• Mid-priced single-family homes: about 1% to 3% of the purchase price
• Higher-priced or luxury homes: a higher percentage or a large flat amount, sometimes reaching the six-figure range

Here are examples to visualize the range:

• 600,000 dollars at 1% equals 6,000 dollars; at 2% equals 12,000 dollars
• 1,200,000 dollars at 1% equals 12,000 dollars; at 2% equals 24,000 dollars

Local practice varies by neighborhood and price tier. In multiple-offer situations, sellers may expect higher deposits or faster deposit timing.

When it is due

Your contract sets the deadline. On offers that use common local forms, the deposit is often due within 1 to 3 business days after mutual acceptance. In hot situations, sellers may ask for 24 to 48 hours or immediate delivery.

Plan ahead so you can fund quickly. Confirm wire instructions and bank timelines so you do not miss a deadline.

How to pay the deposit

Earnest money is usually held by the escrow or title company that is handling the closing. In some cases it can be held in a broker trust account.

Common payment methods include a wire transfer to escrow or a cashier’s check. Some escrow providers allow a personal check, but wires or cashier’s checks are often preferred. Ask the escrow company for acceptable forms and instructions before you send funds.

What happens after deposit

Escrow will issue a receipt and hold the funds in a trust account. At closing, your deposit is applied to your down payment or closing costs. If the purchase ends within a valid contingency, the agreement typically calls for your earnest money to be returned to you.

Protections and contingencies

Contingencies outline the conditions you need to meet to proceed. If a contingency is not satisfied within its timeline, you may be able to terminate and have your deposit returned, subject to the contract.

Common buyer protections include:

• Inspection contingency. You can inspect and negotiate or cancel within the inspection period.
• Financing contingency. If your loan cannot be obtained within the agreed timeframe, you can typically cancel and keep your deposit.
• Appraisal contingency. If the appraisal comes in low and you cannot reach agreement with the seller, you may cancel.
• Title and survey contingencies. You can review title and related items and terminate if certain defects cannot be cured.

Your rights are tied to timelines and notices in the contract. Track each deadline, confirm how to remove contingencies, and document every step.

When you could forfeit it

If you remove your contingencies and later default without a contract reason to cancel, you risk losing your deposit. Many forms used in Washington allow the seller to keep the earnest money as liquidated damages, but this depends on the remedy clause in your signed agreement.

Sellers may also consider other remedies, such as specific performance or damages, depending on the facts and the contract language. The exact wording matters, so review it carefully before you sign or remove protections.

Disputes and release of funds

Escrow companies follow the disbursement instructions in your purchase agreement. If both parties agree on what should happen, they send joint written instructions to escrow and the funds are released.

If there is a disagreement, escrow will usually hold the funds until both parties sign a release or a court issues an order. In some cases, the escrow holder may interplead the funds to the court while the parties resolve the dispute. Early communication and a mutual release can save time and stress.

Washington forms and process

Most Bellevue transactions use Northwest Multiple Listing Service and Washington REALTORS forms. These include standard language for earnest money, timelines, contingency removal, and disbursement.

Escrow and title companies in Washington hold earnest money in regulated trust accounts. Real estate licensees must follow state rules for trust funds and disclosures. You should confirm who will hold the deposit and how it will be documented at the start of the process.

Strong offers with lower risk

You can write a competitive offer while keeping protections that matter. Consider these strategies:

• Increase the deposit within reason. A higher amount shows commitment, but only risk what you can afford to lose if you default after removing contingencies.
• Shorten the deposit deadline. Funding within 24 to 48 hours can reassure a seller. Confirm your bank and escrow can meet the timing.
• Keep key contingencies but shorten timeframes. A focused 5 to 10 day inspection period and financing timelines aligned with your lender can be attractive.
• Show strong financing. Provide pre-approval or pre-underwriting and proof of funds for the deposit and down payment.
• Use an appraisal gap or escalation clause with clear limits. These can help you stay competitive while keeping an inspection contingency intact.
• Avoid blanket waiver of inspection or financing unless you fully understand the risk. Waiving increases the chance of a forfeiture if you cannot close.

Non-refundable clauses: proceed carefully

Sellers sometimes ask for non-refundable or “hard” earnest money after certain milestones. This reduces their risk but increases yours. If you consider a non-refundable clause, try to limit it to after specific protections are satisfied, such as inspection and financing.

Before you agree to any non-refundable language, confirm timelines, notice requirements, and what events would still allow a refund. Precision here can protect you from unintended outcomes.

Buyer checklist before you deposit

• Confirm the deposit amount and acceptable payment methods with escrow and your lender.
• Verify your deposit deadline and have funds ready to send immediately after mutual acceptance.
• Map every contingency deadline and how to remove it in writing.
• Obtain lender pre-approval or pre-underwriting and collect proof of funds.
• Align strategy with your agent: deposit size, inspection days, appraisal gap, and price.
• Keep records: deposit receipt from escrow, signed addenda, and email confirmations.

Real-world scenarios

• You waive inspection, then discover significant defects. You may have limited ability to cancel and could lose your deposit if you default.
• You remove your financing contingency and later cannot close. The seller may keep your earnest money as liquidated damages, depending on your contract.
• Your loan is denied within a valid financing contingency. You terminate within the timeline, and your deposit is typically refunded according to the agreement.

Bottom line for Bellevue buyers

Earnest money is your first proof of commitment in a Bellevue offer. Get the amount and timing right, protect yourself with smart contingencies, and compete with a clear plan that fits your comfort level. If you want a tailored strategy for your price point and neighborhood, connect with a local team that lives this process every day. Schedule a Strategy Session with a Principal at Foundation First Group to move forward with confidence.

FAQs

How much earnest money do Bellevue buyers usually put down?

• On the Eastside, 1% to 3% of the price is common for many single-family homes, with lower flat amounts for some condos and larger sums for higher-priced homes.

When is earnest money due in Washington purchase agreements?

• Offers often require deposit within 1 to 3 business days after mutual acceptance, though sellers may ask for 24 to 48 hours or immediate deposit in competitive situations.

Who holds the earnest money in Bellevue transactions?

• The escrow or title company commonly holds the funds in a trust account, though a broker trust account may be used in some cases.

Is my earnest money refundable if my financing falls through?

• If you have an active financing contingency and follow the contract timelines and notices, you can typically terminate and receive a refund per the agreement.

What if the appraisal comes in low on my Bellevue purchase?

• With an appraisal contingency, you can renegotiate or cancel if you and the seller cannot agree; without it, you may need to cover the gap to avoid default.

Can waiving the inspection help me win in Bellevue?

• It may strengthen your offer, but it raises risk; consider keeping the inspection contingency and shortening the timeline instead of waiving it outright.

What happens to the deposit if the buyer and seller disagree about release?

• Escrow will usually hold the funds until both parties sign a mutual release, a court orders disbursement, or the escrow holder interpleads the funds into court.