Earnest Money In Clark County: A Buyer’s Guide

Are you wondering how much earnest money you need to put down in Clark County and what happens to it if something goes sideways? You are not alone. Earnest money can feel confusing, especially when the market shifts from neighborhood to neighborhood. In this guide, you will learn what earnest money is in Washington, how much buyers in Vancouver, Camas, and Battle Ground typically offer, what deadlines matter, and how contingencies protect your deposit. Let’s dive in.

What earnest money is in Washington

Earnest money is a good‑faith deposit you submit with your offer to show the seller you are serious. It is usually held by an escrow or title company and is credited to you at closing, often toward your down payment or closing costs if the sale closes.

Your purchase contract specifies the amount and when you must deliver it to escrow. Many Washington contracts also include a liquidated damages clause. If a buyer defaults and the seller elects liquidated damages under the contract, the seller may be entitled to keep the earnest money. The exact remedies depend on the contract language and circumstances.

Your earnest money is generally at risk only if you violate the contract outside the protections of valid contingencies or you miss deadlines. When you terminate within a contingency period according to the contract, you typically keep your earnest money.

How much is typical in Clark County

There is no single rule, but common practice in many markets is about 1 percent of the purchase price. In more competitive situations, buyers sometimes offer 2 to 3 percent or more to strengthen an offer. Local conditions matter. Camas and some Vancouver neighborhoods can be more competitive, while parts of Battle Ground and outlying areas may be less competitive depending on inventory.

If you want to balance cash flow and competitiveness, consider a two‑step deposit. You make a smaller initial deposit quickly, then a larger second deposit when a key milestone occurs, such as after inspection removal. This strategy signals commitment while managing risk and timing.

Sample earnest money by price

Use this as a quick reference. The right amount for you depends on the home, competition, and your comfort with risk.

Deadlines and how escrow holds funds

Your contract will set a deadline to deliver earnest money to the named escrow or title company. Many local offers use a short window, often a few business days from mutual acceptance, but the exact timing is what you and the seller agree to in writing. Some contracts also include a second deposit due when a contingency is removed.

Escrow or title holds your deposit and releases it only according to the contract and written instructions from both parties, or as allowed by escrow rules or a court order. If there is a disagreement over who should get the funds, escrow may hold the money until the parties reach a mutual written agreement or a court directs disbursement.

What matters most is meeting your delivery deadlines. Calendar them, confirm wire instructions or check delivery, and keep receipts. Missing a deposit deadline can be treated as a default depending on your contract.

Contingencies that protect your deposit

Contingencies are your safety net. Used correctly, they help you terminate within a set window and keep your earnest money.

Inspection contingency

• Purpose: Gives you time to inspect the property and negotiate repairs or terminate within the inspection period.
• Protection: If you terminate within the inspection timeline per the contract, you are typically entitled to a refund of your earnest money.
• Tip: Set a realistic inspection period. Coordinate scheduling early so you do not miss the deadline.

Financing contingency

• Purpose: Protects you if you cannot obtain loan approval or acceptable terms within the timeframe.
• Protection: Timely termination under the financing contingency usually preserves your deposit.
• Tip: Work with your lender early to align pre‑approval, underwriting, and rate lock with your contract dates.

Appraisal contingency

• Purpose: Lets you address a low appraisal by renegotiating, bringing extra funds, or terminating.
• Protection: If you terminate within the appraisal contingency window, you generally receive your earnest money back.
• Tip: In competitive offers, some buyers waive appraisal or offer an appraisal gap. This can increase risk to your earnest money if the appraisal comes in low.

Title review contingency

• Purpose: Allows you to review the title report and require resolution of issues.
• Protection: Unresolved title defects within the review period typically allow you to terminate and recover your deposit.

Sale‑of‑home contingency

• Purpose: Makes your purchase dependent on selling your current home.
• Protection: If your home does not sell by the deadline and you terminate under this contingency, your earnest money is usually protected. Be aware these offers are less competitive.

When you remove contingencies, your risk to the deposit increases. Shortening or waiving protections can strengthen your offer, but only do so with a clear plan and comfort with the risk.

Offer strategies for Clark County buyers

• Align the deposit with the neighborhood. In balanced areas, around 1 percent is common. In competitive pockets of Camas and parts of Vancouver, consider increasing to 2 to 3 percent if it fits your comfort.
• Use a two‑step deposit. Make a smaller amount at mutual acceptance and a larger second deposit after a key milestone, such as inspection removal.
• Keep key protections. Inspection and financing contingencies are critical for most buyers. If you are considering changes, explore safer options like a pre‑inspection or a stronger lender commitment rather than outright waivers.
• Coordinate your lender and agent. Set realistic contingency windows. Provide proof of funds or a firm pre‑approval to strengthen your position without giving up important protections.
• Document every step. Save receipts for wires or checks and written acknowledgements from escrow. Send notices in writing and track delivery.
• Confirm escrow details early. Identify who holds the deposit, how to deliver funds, and what their release procedures are if a dispute arises.

Clark County examples

• Scenario A – moderate market: You offer $400,000 with 1 percent earnest money, or $4,000. You set a 10‑day inspection and a 21‑day financing contingency. An inspection reveals a major issue and you terminate within 10 days. Your earnest money is returned.
• Scenario B – competitive Camas listing: You offer $650,000 with 2 percent earnest money, or $13,000, and a 7‑day inspection to stand out. The higher deposit adds strength, but your exposure increases if you later remove contingencies and try to back out.

Quick checklist before you offer

• Review current conditions in the specific neighborhood and price band.
• Choose an earnest money amount that balances strength and risk.
• Decide on contingency timelines that you can confidently meet.
• Get a strong lender pre‑approval and confirm loan milestones.
• Name your escrow or title company and confirm deposit delivery steps.
• Ensure funds are accessible to meet the deposit deadline.
• Line up inspectors and any specialists you may need.

Avoid common pitfalls

• Missing the deposit deadline. Calendar it immediately at mutual acceptance and confirm delivery.
• Waiving key contingencies without a plan. Consider alternatives like shorter timelines, pre‑inspections, or stronger documentation from your lender.
• Wiring funds without confirming details. Always verify instructions directly with the escrow or title company.
• Removing contingencies too early. Only remove protections when you are confident you can close.

Ready to move with confidence

Your earnest money is a powerful way to show commitment while protecting your interests. By choosing the right amount for the neighborhood, meeting deadlines, and using contingencies wisely, you can write a competitive offer and keep your deposit protected. If you want a plan tailored to your goals in Vancouver, Camas, or Battle Ground, connect with Marjie Van Der Laan for a personalized consultation and local guidance.

FAQs

What is earnest money in Washington real estate?

• Earnest money is a good‑faith deposit held by escrow or title to secure your purchase and is credited to you at closing if the sale completes.

How much earnest money do Clark County buyers usually offer?

• Many offers use around 1 percent in balanced markets and 2 to 3 percent in more competitive situations, adjusted for neighborhood and price.

When is earnest money due after my offer is accepted?

• Your contract sets the deadline. Many local offers use a short window of a few business days, but the exact timing is what you and the seller agree to.

How do contingencies protect my earnest money?

• If you terminate within the inspection, financing, appraisal, title, or sale‑of‑home contingency periods per the contract, you typically receive your deposit back.

Who holds the earnest money and how is it released?

• A named escrow or title company holds the deposit and releases it based on the contract and written instructions from both parties, or by court order if needed.

Can the seller keep my earnest money if I back out?

• If you breach outside your contingencies or miss deadlines, the seller may be entitled to keep the deposit under a liquidated damages clause, depending on the contract.