Earnest Money Norms In Bellevue Offers

Are you unsure how much earnest money to put down in a Bellevue offer or when it becomes non-refundable? You are not alone. Between high price points and fast timelines, even seasoned buyers want clear, local guidance. In this guide, you will learn typical deposit ranges by price tier, how Washington purchase contracts protect your funds, and smart strategies to stay competitive without taking on unnecessary risk. Let’s dive in.

Earnest money basics in Bellevue

Earnest money is a good faith deposit you deliver to escrow when you enter a purchase agreement. The funds are credited to you at closing or released per the contract if the deal cancels. Escrow is a neutral third party that holds the funds and releases them only with mutual instructions or as the contract allows.

In Bellevue, most transactions use regional forms from NWMLS or Washington REALTORS. Your refund rights do not come from informal custom. They come from the wording in the purchase contract, the contingency clauses you include, and the dates you agree to meet.

Typical deposit amounts

Bellevue is a higher priced market, so deposits are often expressed as a percentage of the price, sometimes with a minimum flat amount. The amount you choose signals seriousness to the seller and affects your risk if you remove contingencies.

• Lower price tier, often condos and townhomes under roughly 700,000 to 900,000: about 1.0% to 2.0% of the price. Example: on 600,000, that is 6,000 to 12,000.
• Mid price tier, typical single family homes: about 1.5% to 3.0%. Example: on 1,500,000, that is 22,500 to 45,000.
• Upper and luxury tier, 2,000,000 and above: about 2.0% to 5.0%. Example: on 3,500,000, that is 70,000 to 175,000.
• Very competitive settings or all cash offers may show 5% or more, or staged deposits that increase at a milestone like inspection removal.

New construction often uses builder contracts that require larger or staged deposits. Treat those as distinct and read them with care.

When deposits turn non-refundable

The key principle is simple. The contract controls. Earnest money becomes non-refundable when you remove or waive contingencies, miss a deadline, or otherwise breach the agreement.

Inspection contingency

Most buyers set a defined inspection period, often several business days, but the contract sets the exact timeline. If you terminate within that period following the contract procedures, your deposit is typically refundable. If you remove the inspection contingency and later try to cancel due to condition, your deposit may be at risk unless the seller agrees in writing.

Financing and appraisal

If you keep a financing contingency and cannot obtain the loan by the stated date, you may terminate per the contract and recover your deposit. If you waive the financing or appraisal protections and the loan or valuation later fails, you may forfeit your earnest money.

Title and HOA review

Washington contracts allow time to review title, CC&Rs, and HOA documents. If you end the transaction within that review window per the contract, the deposit typically returns to you.

Sale of home contingency

If your offer depends on selling your current home and that sale does not complete in time, you may terminate as allowed by the contract and recover the deposit if you follow the required steps.

Delivery and removal dates matter

• Your offer sets delivery deadlines for the deposit, often within one to five business days after mutual acceptance. Meet these deadlines and keep receipts from escrow.
• Contingency removal is usually a written step. When you sign a removal and the deadline passes, the deposit often shifts to non-refundable status unless the contract states otherwise.
• Some competitive offers add language that a portion of the deposit becomes non-refundable at a milestone. That must be clearly written into the contract.

Delivery, escrow, and security

How you deliver funds

Common delivery methods include wire transfer, cashier’s check, or a check deposited with escrow or the title company. Larger deposits are often wired. Escrow will issue a receipt and account for the funds on your closing statements.

Preventing wire fraud

Wire fraud is a real risk. Always verify wiring instructions directly with the escrow or title company using a phone number you obtain from a trusted, independent source. Do not rely on emailed instructions alone.

If a dispute arises

If buyer and seller disagree about who should receive the funds, escrow will hold the deposit until both sides provide written instructions or a court or contract dispute process directs disbursement. Washington forms often outline mediation or arbitration procedures that affect timing.

Offer strategies buyers use

Ways to signal strength

You can make your offer more attractive without overcommitting on earnest money. Consider a clean presentation, a competitive price or escalation terms, flexible closing dates, or a tighter but still workable inspection period. Align these choices with your risk tolerance and lender’s timeline.

Staged deposits explained

Some buyers use a split deposit. For example, an initial amount at mutual acceptance, then an additional amount due when you remove inspection or financing. If you choose this route, make sure the amounts and dates are clear in the contract.

Balance risk and reward

A larger deposit can help you stand out, but it also raises the stakes if you later remove contingencies. Keep protections in place until you have the information you need, and coordinate timing across inspection, appraisal, and underwriting.

Bellevue price scenarios

Scenario A: Condo or entry property

• Price: 650,000
• Typical deposit: 1.5%, about 9,750, with a range of 6,500 to 13,000.
• Common protections: 7 day inspection and 21 day financing. If you cancel within those periods following the contract, the deposit typically returns. If you remove financing and the loan fails later, the deposit may be at risk.

Scenario B: Mid market single family

• Price: 1,500,000
• Typical deposit: 2.0%, about 30,000, with a range of 22,500 to 45,000.
• Competitive option: seller asks for 3% or a non-refundable portion after inspection removal. A staged plan could be 30,000 at mutual acceptance and an extra 15,000 at financing removal.

Scenario C: Higher end or luxury

• Price: 3,200,000
• Typical deposit: 3.0%, about 96,000, with a range of 64,000 to 160,000.
• Note: all cash or multiple offers may push expectations higher. If you use financing, confirm with your lender that timelines and documentation support appraisal and underwriting before you release protections.

Scenario D: New construction

• Price: 1,800,000
• Builder contracts often require larger or staged deposits and have different clauses. Read the builder’s deposit terms carefully and coordinate with escrow and your lender before you agree to early non-refundable milestones.

Scenario E: Tight contingency timing

• Price: 1,250,000 with a 25,000 deposit, about 2%.
• The offer sets a 5 day inspection and 14 day financing window. If you remove inspections in writing on day 5, the deposit may become non-refundable at that point unless the contract sets a different rule. If financing then fails later, the seller may claim the deposit per the contract.

Smart next steps

• Set your budget and timeline with your lender so your financing and appraisal windows align with your offer.
• Choose a deposit that signals commitment but matches your risk tolerance.
• Protect your funds by keeping inspection, financing, and appraisal contingencies until you have the information you need.
• Plan the deposit logistics early, including wire verification and proof of delivery to escrow.
• Keep meticulous records of all signed contingency removals and delivery receipts.

If you want a Bellevue specific strategy that balances strength with protection, connect with a seasoned advisor who understands local norms and contract mechanics. For a confidential conversation about your plans, reach out to John Thompson.

FAQs

What is earnest money in a Bellevue home purchase?

• It is a good faith deposit held by escrow and later credited to you at closing or released per the contract if the deal does not complete.

How much earnest money is typical in Bellevue?

• Many offers use 1% to 3% depending on price tier, with higher deposits for luxury or competitive situations. The right amount balances strength and risk.

When does earnest money become non-refundable in Washington?

• Usually when you remove or waive key contingencies, miss deadlines, or otherwise breach the contract. The purchase agreement language controls the outcome.

How fast do I need to deliver the deposit?

• Your contract sets the deadline, often within one to five business days after mutual acceptance. Meet that date and obtain a receipt from escrow.

Do I still need a deposit if I am an all cash buyer?

• Yes. Cash buyers commonly provide earnest money to show commitment. Amounts are sometimes larger in competitive settings.

Can I get my deposit back if I cancel after inspection?

• If you terminate within the inspection window and follow the contract steps, the deposit is typically refundable. If you removed inspection protections, it may not be.

What if the appraisal comes in low?

• If you have appraisal or financing protections and end the deal under those terms, the deposit typically returns. If you waived those protections, your deposit may be at risk.