Wondering how much cash you need to put down with your offer in Westerville? That upfront deposit, called earnest money, can feel confusing when you are excited about a home and do not want to make a mistake. You want to show the seller you are serious without taking on more risk than needed. In this guide, you will learn how earnest money works in Westerville and Franklin County, what amounts are typical, when it is refundable, and how to protect it. Let’s dive in.
What earnest money is
Earnest money is a good‑faith deposit you include with your offer to show the seller you are committed. It is not an extra fee. Your deposit is usually applied to your cash to close at settlement, which can include your down payment and closing costs.
In Ohio, earnest money is controlled by your signed purchase contract. There is no single state rule that sets a fixed amount or universal timeline. The contract spells out who holds the funds, deadlines, contingencies, and what happens if either side does not perform.
Most Westerville transactions use a title or escrow company to hold the deposit in a trust account. Sometimes a brokerage trust account is used. Your contract will name the escrow holder and set a deadline for delivering the funds.
Typical amounts in Westerville
There is no fixed number for deposits. Local practice and market conditions drive what is considered competitive.
- Lower‑priced homes or less competitive situations: commonly $500 to $2,500.
- Typical suburban single‑family homes in Franklin County: many offers use $1,000 to $5,000.
- Higher‑priced or very competitive offers: often 1% to 2% of the price or more. For example, 1% on a $400,000 home is $4,000.
What can move your deposit up or down:
- Market strength: stronger sellers’ markets often see higher deposits.
- Price point: higher prices usually mean larger deposits.
- Offer terms: cash or fewer contingencies often pair with larger deposits.
- Risk comfort: if you plan to remove contingencies early, you may offer more; if you prefer protection, you may keep it lower.
- Seller expectations: some sellers and listing agents prefer a minimum deposit.
Tip for Westerville buyers: for a first purchase in normal conditions, expect deposit requests in the low‑thousands on typical suburban listings. Ask your agent for neighborhood‑specific norms and what will make your offer stand out.
When it is refundable
Common contingencies
These contract clauses usually protect your deposit when used within the deadlines:
- Inspection contingency: cancel within the inspection window if needed.
- Financing contingency: if you cannot obtain your loan and follow notice rules.
- Appraisal contingency: if the home does not appraise at the contract price and you cancel per the contract.
- Title contingency: if title defects cannot be cured as agreed.
- HOA or document review: for condos or HOA properties when documents are not acceptable.
Deadlines to watch
Your contract sets the exact dates, but common timeframes include:
- Deposit delivery: often within 24 to 72 hours after acceptance.
- Inspection period: commonly 7 to 10 days from acceptance.
- Loan commitment: often 21 to 30 days.
- Appraisal: typically ordered after ratification and may take 1 to 2 weeks.
To protect a refund, deliver written notices on time as your contract requires. The escrow holder will need written instructions or a release to return funds.
When it may not be refundable
Your deposit is at risk if:
- You miss deadlines or waive contingencies and later cancel.
- You cancel for reasons not covered by the contract.
- You fail to close without a valid contractual reason. In that case, the seller may claim the deposit as liquidated damages if the contract allows, or pursue other remedies.
How escrow works here
At acceptance
Your offer should state the deposit amount, who will hold it, and the delivery deadline. Many buyers use a cashier’s check or wire to the named title or escrow company. Follow wire security best practices provided by the escrow holder.
During escrow
The escrow holder keeps your funds in a trust account. The deposit appears on your closing statement and is credited toward your cash to close.
If the deal cancels
If you cancel under a valid contingency and follow the contract, the escrow holder releases funds back to you after receiving proper instructions. If there is a disagreement, the funds are usually held until both parties agree or there is a final resolution.
Smart strategies to strengthen your offer
Right‑size your deposit
Pick a number that signals commitment but does not exceed what you are comfortable risking if you later waive protections. In higher‑priced or competitive listings, a 1% deposit can be a solid starting point.
Protect yourself with contingencies
Use inspection, financing, appraisal, and title contingencies as appropriate. If you increase the deposit to win in a competitive setting, keep or tailor contingencies to guard your refund rights.
Keep funds ready and safe
Have the deposit liquid and ready to deliver within 24 to 72 hours of acceptance. Use a cashier’s check or secure wire per the title company’s instructions.
Use written changes only
If you adjust timelines or deposit amounts after acceptance, put every change in a signed amendment so your refund rights are clear.
Ask for local norms
Seller expectations can vary by neighborhood and price tier in Westerville and greater Franklin County. Your agent can share what local sellers are seeing and help you calibrate.
If a dispute happens
Most contracts require a mutual release or a defined dispute process, such as mediation or court, before escrow can release funds. Title companies will hold deposits until they receive mutual instructions or a final decision. Keep thorough records of notices and communications, and involve your agent. For complex issues, consult a local real estate attorney or your title company for next steps.
Ready to buy in Westerville?
A thoughtful deposit can make your offer stronger while keeping your interests protected. If you want help right‑sizing your earnest money and structuring contingencies for Westerville neighborhoods, connect with Teresa Powell for concierge‑level buyer guidance.
FAQs
How much earnest money should I offer in Westerville?
- Typical deposits range from a few hundred dollars on lower‑priced homes to $1,000–$5,000 on many suburban listings, and often 1% or more in competitive situations. Ask your agent for current neighborhood norms.
Who holds my earnest money in Westerville?
- Usually a title or escrow company holds the funds in a trust account. Some deals use a brokerage trust account. Your contract names the escrow holder.
How fast do I need to deliver the deposit after acceptance?
- Many contracts require delivery within 24 to 72 hours of mutual acceptance. Check the deadline in your signed agreement and plan your payment method in advance.
When is my earnest money refundable if I cancel?
- If you cancel under a contract contingency, such as inspection, financing, appraisal, or title, and provide timely written notice per the contract, your deposit is typically refundable.
What happens if the seller backs out of our Ohio contract?
- If the seller wrongfully refuses to close, you can usually recover your earnest money and may have additional remedies as outlined in the contract and applicable law.
