What Is An Earnest Money Deposit?

The Earnest Money Deposit (EMD) is a good-faith deposit a buyer submits when entering escrow, typically 1–3% of the purchase price in our market.

This deposit shows the seller you’re serious — and it is applied toward your closing costs or down payment at the end. With proper contingencies, your EMD is protected. Inspection, loan, and appraisal contingencies give you time to evaluate the home without risking your deposit.

I guide buyers on writing clean offers that are still protected — and I help sellers evaluate EMD strength to minimize risk.