Buying in Brookhaven or anywhere in North Atlanta, you’ll hear “earnest money” early and often. It can be the difference between winning your dream home and losing out in a multiple-offer situation. If you’re unsure how much to put down, when it’s refundable, or how it works in Georgia, you’re not alone.
This guide breaks down earnest money in clear, practical terms for Brookhaven buyers at every price point. You’ll learn typical deposit ranges, how escrow works in Georgia, what makes funds refundable versus non-refundable, and smart ways to show offer strength without taking on unnecessary risk.
Let’s dive in.
What is earnest money
Earnest money, also called an earnest-money deposit or good-faith deposit, is a payment you make when your offer is accepted. It shows the seller you’re serious and locks in the contract while you complete inspections, appraisal, financing, and other steps. If the sale goes through, your deposit is applied to your purchase at closing.
Think of it as a confidence builder for the seller and a practical part of your funds to close. The exact rules for refunds and release live in your purchase contract and depend on the escrow holder named in that contract.
How much to put down in Brookhaven
Across many Georgia transactions, a common range is 1% to 3% of the purchase price. In competitive segments or multiple-offer scenarios, buyers often increase to 3% to 5% or more, or offer a larger flat amount, like $10,000 to $25,000, to send a stronger signal. For lower-priced homes or when you need to preserve cash, some buyers offer smaller fixed deposits, such as $1,000 to $5,000.
Your amount should reflect two things: how competitive your target submarket is and your personal risk tolerance. A larger deposit can help your offer stand out, but it also raises your exposure if you later waive protections. Brookhaven has a mix of condos, townhomes, single-family homes, and luxury listings, and norms can vary by property type and price band. Calibrate your deposit to the segment you are shopping.
How escrow works in Georgia
Your purchase contract should name the escrow holder and spell out the delivery timeline and method. In Georgia, escrow can be held by a title company, a settlement agent or attorney, or a licensed broker’s trust account. You typically have a short window after contract ratification to deliver funds, commonly 48 to 72 hours, but the contract controls the exact timing.
You can usually deliver by certified or cashier’s check, personal check, or wire transfer, depending on the escrow holder’s policy. For larger deposits, wires are common. Always verify wiring instructions with the escrow or title company by calling a known phone number to avoid wire fraud.
Whether funds earn interest and who receives it depends on the escrow agreement and the holder’s practices. Disbursement follows the contract and any built-in dispute procedures, which may include mutual release, closing, mediation or arbitration, or a court interpleader if there is a stalemate.
When earnest money is refundable
If you exercise a contractual right to terminate within the required time and manner, your earnest money is typically refundable. Common protections include:
Key buyer contingencies
- Inspection contingency. You can terminate within the agreed inspection period if you are not satisfied. Timely written notice is essential.
- Financing or mortgage contingency. If you cannot obtain financing under the terms and within the timeline in your contract, you may terminate and seek a refund.
- Appraisal contingency. If the appraisal comes in materially low and you and the seller cannot reach a solution, you may have a right to terminate.
- Title contingency. You can terminate if title defects are found and the seller does not cure them on time.
- HOA or document review periods. Many contracts include a review window for condos and townhomes.
How to preserve your refund rights
- Follow the contract exactly. Send written termination notice within the stated deadlines and to the parties named in the contract.
- Keep records. Save emails and delivery receipts to show you met the requirements.
- Avoid accidental waivers. Do not miss deadlines or keep performing in ways that could be seen as waiving a contingency you meant to keep.
Refundability is always conditional on the contract. If a deadline passes without proper notice, protections can expire.
When deposits “go hard” (non-refundable)
Your earnest money can become non-refundable in a few common situations:
What triggers non-refundable status
- You waive contingencies. If you remove inspection, financing, appraisal, or similar protections, you have fewer grounds for a refund.
- Deadlines expire. If a contingency period lapses without timely written termination, that protection may be lost.
- The contract says so. Some contracts include language that makes all or part of the deposit non-refundable after a specific date or condition.
- Buyer default at closing. If you fail to close without a contractual right to terminate, the seller may have a claim to keep your deposit.
Remedies and practical examples
- Liquidated damages. Some contracts allow the seller to keep the earnest money as the agreed remedy for buyer default. Confirm whether your contract includes this.
- Additional remedies. Depending on the contract, the seller might pursue additional damages or specific performance.
- Example: You waive inspection on a $700,000 home and later decide not to proceed. With protections removed, the deposit may be at risk.
- Example: Your financing contingency expires, you do not terminate in writing, and you cannot close. The deposit may be subject to a seller claim.
Brookhaven buyer scenarios
These examples illustrate how buyers in Brookhaven and North Atlanta might structure deposits and terms. Adjust to your price point and comfort level.
A condo first-time buyer
- Price: $350,000.
- Conservative deposit: 1% or about $3,500.
- Competitive move: increase to $5,000 to $7,500, keep inspection and financing contingencies, and shorten the inspection window to 5 to 7 days and financing to 10 to 14 days.
- Trade-off: a larger deposit strengthens your offer while preserving key protections.
A move-up single-family buyer
- Price: $900,000.
- Strong deposit range: 2% to 3% or a flat $25,000.
- Tactics: combine a larger deposit with a shorter inspection period, and consider an appraisal gap amount rather than waiving the appraisal contingency outright. Offer a flexible closing date or a brief rent-back if the seller needs it.
- Trade-off: higher deposit signals strength, but do not overextend on appraisal gaps or waived protections.
A mid-price multiple-offer situation
- Price: $600,000.
- Balanced approach: 2.5% or $15,000 earnest money, appraisal contingency with a modest cure cap, and a 7-day inspection period.
- Aggressive alternative: a $25,000 non-refundable option-style deposit if both parties agree in writing. Understand that non-refundable means the funds are at risk if the deal falls through on your side.
A luxury purchase
- Price: $1.8 million.
- Common practice: 1% to 2% earnest money paired with clean, seller-friendly terms such as shorter due diligence or flexible closing.
- Strength signals beyond deposit: quick proof of funds, responsive timelines, and clear communication can carry weight without oversized deposits.
Show strength without extra risk
You can build a winning offer while protecting your deposit and your budget. Consider these options:
- Increase the deposit moderately. Move from 1% toward 2% to 3% to stand out in competitive segments without going all-in.
- Shorten contingency windows, not protections. A 5 to 7 day inspection window shows seriousness while preserving your right to terminate if needed.
- Use appraisal gap language carefully. Commit a defined dollar amount to bridge a shortfall instead of waiving the appraisal contingency entirely.
- Offer timeline flexibility. A closing date that fits the seller, or a brief rent-back when appropriate, can be as persuasive as more cash.
- Communicate clearly and respond fast. Clean, complete offers with verified funds and lender updates reduce perceived risk for the seller.
Buyer checklist: protect your deposit
Before you sign
- Confirm the named escrow holder in the contract, such as a title company, attorney, or broker trust account.
- Review contingency deadlines, notice requirements, and dispute resolution clauses with your agent and, if needed, an attorney.
- Choose a deposit amount that matches the market and your risk tolerance.
Delivering the deposit
- Follow the contract’s method and deadline exactly, and get a written receipt.
- For wires, verify instructions by calling a known number for the escrow or title company to avoid wire-fraud scams.
During contingencies
- Track every deadline with calendar reminders. Inspection, appraisal, financing, and HOA review dates matter.
- If you plan to terminate, send written notice on time and keep copies.
- If you consider waiving protections, discuss the risks with your agent, lender, and inspector first.
If a dispute arises
- Try to negotiate a mutual release of earnest money.
- Follow the contract’s dispute-resolution steps, which may include mediation, arbitration, or court.
Documentation
- Keep copies of all receipts, emails, inspection reports, and lender communications in one folder.
Georgia contract notes
In Georgia, the purchase contract governs all earnest-money terms, including deadlines, escrow holder, and remedies. Brokers who hold escrow must follow state rules for trust funds, and many transactions use title companies for escrow. Standard forms often include dispute procedures. If the parties cannot agree, the escrow holder may interplead the funds into court, which can be time consuming and costly.
Georgia law allows parties to negotiate non-refundable deposits or liquidated-damages clauses if they are clearly stated in the contract. Read every clause carefully and ask questions before you sign.
Buying in Brookhaven should feel confident, not confusing. With the right plan, you can use earnest money to strengthen your offer while protecting your interests. If you want help choosing the right deposit amount, setting smart timelines, and coordinating financing, insurance, and closing under one roof, our team is here for you in English or Vietnamese.
Ready to move forward with a plan that fits your goals? Connect with La'Tep Real Estate Group for a clear, local strategy.
FAQs
What is earnest money in a Georgia home purchase?
- It is a good-faith deposit you pay at contract acceptance that applies to your purchase at closing and signals offer strength to the seller.
How much earnest money is typical in Brookhaven?
- Many buyers offer about 1% to 3% of the price, and in competitive segments some increase to 3% to 5% or use a larger flat amount to stand out.
Who holds earnest money in Georgia deals?
- The contract names the holder, often a title company, settlement attorney, or a licensed broker’s trust account.
When is earnest money refundable in Georgia?
- It is generally refundable if you terminate properly under a surviving contingency, within the contract’s deadlines and notice rules.
How fast do I need to deposit earnest money?
- Many contracts require delivery within a short window, commonly 48 to 72 hours after ratification, but your contract controls the exact deadline.
What makes earnest money “go hard” or non-refundable?
- Waived contingencies, missed deadlines, explicit non-refundable clauses, or a buyer default at closing can put the deposit at risk.
Can I earn interest on my earnest money?
- It depends on the escrow holder’s practices and your contract. Some accounts are non-interest-bearing, and terms vary.
What happens if there’s a dispute over my deposit?
- Contracts often call for mediation or arbitration, and if parties cannot agree, the escrow holder may interplead funds into court for a decision.
