Earnest Money in Everett WA: What Smart Buyers Should Know

Buying in Everett and not sure how much earnest money to put down? You are not alone. Between deadlines, contingencies, and local customs, it can feel like a lot to track. This guide breaks down what earnest money is, typical amounts in Everett, how refunds work, and smart steps to protect your deposit. Let’s dive in.

What earnest money is in Washington

Earnest money is a good‑faith deposit you offer once a seller accepts your offer. It shows you are serious about closing. At closing, it is usually applied to your down payment and closing costs. If a buyer defaults under the contract, the seller may be entitled to keep the deposit as a remedy.

Where your deposit is held

In Washington, earnest money is typically deposited with the escrow or title company handling the closing, a law firm, or the listing broker’s trust account. These accounts follow strict trust rules and recordkeeping. Your Purchase and Sale Agreement states who holds the funds and how they are handled.

When you pay it

The contract sets the deposit deadline. In common practice, you will deposit the funds within 1 to 3 business days after mutual acceptance. Always get written confirmation that your deposit was received.

How much is typical in Everett

Everett follows wider Snohomish County norms. In a typical market, buyers often offer about 1% to 3% of the purchase price as earnest money. In multiple‑offer situations, buyers may increase to 3% to 5% or more to strengthen their offer.

Here are simple examples:

• $400,000 purchase: 1% is $4,000. 2% is $8,000.
• $650,000 purchase: 1% is $6,500. 2% is $13,000.

A larger deposit can make your offer more competitive, but it also increases risk if you later default after removing protections. Choose an amount that supports your offer while staying within your comfort level.

Contingencies and refunds in Washington

Contingencies protect you while you complete due diligence. The Purchase and Sale Agreement controls the details, timelines, and notice steps. Common buyer protections include:

• Inspection contingency to investigate condition and negotiate or cancel.
• Financing contingency if your loan is not approved by the deadline.
• Appraisal contingency if the appraisal is below contract price.
• Title review and legal review.
• Seller disclosures and property condition review within contract timelines.

How to keep your refund rights

To preserve a refund, you must act before each contingency deadline and deliver written notice exactly as the contract requires. If you cancel for a valid reason within the timeframe, your earnest money is typically refundable. Keep documentation, such as inspection reports or a lender denial letter, to support your notice.

When a seller may keep it

If you miss a deadline, remove a contingency in writing, or default later, you risk forfeiting your deposit. Standard Washington forms allow sellers to accept earnest money as liquidated damages or pursue other remedies. The exact outcome depends on your contract.

Timeline from offer to closing

Use this common sequence as a guide. Your contract controls the actual dates.

1. Offer accepted and signed by both parties.
2. You deposit earnest money, often within 1 to 3 business days.
3. Inspection period begins. Many buyers use 5 to 10 business days.
4. Financing contingency runs until the loan commitment deadline. Many contracts use 14 to 30 days.
5. Appraisal and title review occur within those windows.
6. You either remove contingencies in writing or cancel before the deadlines. If you cancel under a valid contingency, the deposit is refunded. If you default after removing protections, the seller may keep it under the contract.

Tips to protect your deposit

• Get pre‑approved with a local lender before you shop. Sellers weigh your financing strength and your deposit.
• Match your earnest money to your overall offer strategy. You can balance deposit size with price, inspection timing, and clarity of terms.
• Keep deadlines realistic. Track every date and set reminders 48 to 72 hours ahead.
• Deliver notices in the exact form your contract requires. Email or text may not count unless permitted.
• Do not remove protections until you finish inspections, appraisal review, and loan approval.
• Confirm where funds are held. Ask for written confirmation of deposit from escrow or the broker trust account.
• Use secure methods to transfer funds. Verify wire instructions directly with escrow and keep receipts.

Offer strategies in competitive situations

If a listing is drawing multiple offers in Everett, consider these approaches:

• Increase earnest money into the 3%+ range only if you are comfortable with the risk.
• Shorten your inspection period, but keep enough time to complete thorough due diligence.
• Keep your financing documents organized so your lender can meet the commitment date.
• Offer a clean, complete contract with clear timelines instead of removing protections early.

Buyer checklist: after mutual acceptance

• Confirm your earnest money deposit posted and save the receipt.
• Put all contingency deadlines on your calendar with reminders.
• Order and complete inspections promptly.
• Coordinate with your lender on appraisal and underwriting steps.
• If you need to cancel under a contingency, deliver the required written notice on time and keep copies of all supporting documents.

Final thoughts for Everett buyers

Earnest money is a key part of winning the home you want in Everett, and it can also be well protected if you follow your contract. Choose a deposit that fits your budget, keep your contingency timelines tight, and document every step. With a clear plan and steady communication, you can write a strong offer and move toward closing with confidence.

Ready to make a confident offer in Everett or anywhere in Snohomish County? Let’s talk about strategy, timelines, and what deposit makes sense for you. Connect with Tate Campbell to get started.

FAQs

How much earnest money should I offer in Everett?

• Many buyers start around 1% to 3% of the price, then increase in competitive situations if they are comfortable with the risk and timelines.

Where is earnest money held in Washington?

• Funds are typically deposited with the escrow or title company, a law firm, or the listing broker’s trust account as stated in your contract.

When can I get my earnest money back?

• If you cancel in strict compliance with a valid contingency and its deadline, such as inspection, financing, appraisal, or title review, your deposit is typically refundable.

Can a seller keep my earnest money if we do not close?

• Yes, if you default or cancel improperly after removing protections, the seller may keep the deposit as a contract remedy. The specific outcome depends on your Purchase and Sale Agreement.

How quickly must I deposit earnest money in Everett?

• Your contract sets the deadline. Many agreements require the deposit within 1 to 3 business days after mutual acceptance. Always confirm and get a receipt.