Ever wonder how to make your offer stand out in Savannah without putting too much cash at risk? Earnest money can feel confusing, especially when you are juggling timelines, inspections, and financing. You want a strong offer and a smooth path to closing, but you also want your deposit protected if things change for reasons covered by your contract. In this guide, you will learn what earnest money is, how it typically works in Savannah and across Georgia, how much to offer, and the practical steps you can take to keep your deposit safe. Let’s dive in.
What earnest money is
Earnest money is a good faith deposit that shows a seller you are serious about buying the home. If the deal closes, the deposit is typically applied to your purchase at settlement. If the deal does not close, what happens to the money depends on your contract.
In Georgia, your earnest money is usually held by a neutral third party in an escrow or trust account. Common holders include closing attorneys, title companies, or sometimes a broker’s trust account. These holders follow specific escrow procedures and professional rules. Your purchase agreement will name the escrow holder and set the rules for deposit and release.
Typical amounts in Savannah
There is no single required amount for earnest money. In practice, buyers in Savannah and Chatham County often use ranges that reflect price point and how competitive the market is:
- Lower-priced homes or slower markets: roughly $500 to $2,500.
- Mid-priced homes: roughly $2,500 to $10,000.
- Competitive situations or higher price points: about 1 to 3 percent of the purchase price.
These ranges are guidelines. The right number for you depends on the specific property, the seller’s expectations, and the strength of competing offers. Ask your local agent to share recent examples in your neighborhood and price tier so you can calibrate your deposit.
How to choose your amount
Consider these factors as you set your earnest money:
- Price point. Higher-priced homes often call for larger deposits.
- Market pressure. Multiple offers can push deposits higher.
- Financing and contingencies. Cash or strong financing with fewer contingencies can offset the need for a very high deposit.
- Seller expectations. Your agent can confirm common practices for that area and property type.
A larger deposit can help your offer stand out. Just avoid committing more than you can comfortably risk if you later decide to waive protections.
How it appears in your contract
Most Georgia transactions use standard residential forms that include an earnest money section. Your contract will spell out:
- The deposit amount and who will hold it.
- The deadline for delivery, often within a few days of acceptance.
- What happens to the funds at closing.
Timely delivery matters. If you miss your deposit deadline, the seller may have options under the contract, including accepting a backup offer. Always get a written receipt from the escrow holder that shows the date, amount, and account where your money is held. At closing, your earnest money is typically credited toward your down payment or closing costs.
Contingencies that protect you
Contingencies are contract clauses that give you a window to cancel for specific reasons and recover your earnest money, as long as you follow the rules in the agreement. Common protections include:
- Inspection contingency. If you cancel within your inspection period per the contract, your deposit is generally refundable.
- Financing contingency. If you cannot obtain loan approval within the agreed timeline and you follow the contract’s notice procedures, you can typically recover your funds.
- Appraisal contingency. If the appraisal comes in below the purchase price and you properly exercise your contractual rights, you can cancel and seek a refund of your deposit.
- Title contingency. If clear title cannot be delivered as required, you can usually cancel and recover your deposit.
Contingency windows are strict. Know your deadlines and how cancellation notices must be delivered. If the contract says written email notice is required by a certain time, do exactly that.
When you get it back vs. when you might lose it
Here are common outcomes:
- Refundable scenarios. You cancel under a valid contingency within the deadline and follow the notice steps. Or the seller fails to perform under the contract terms in a way that allows cancellation.
- Forfeiture scenarios. You cancel for a reason not covered by a contingency, you miss a contingency deadline, or you otherwise breach the agreement. Some contracts allow the seller to keep the deposit as liquidated damages.
If there is a dispute about who should receive the money, the escrow holder will usually keep the funds until they receive joint written instructions, a court order, or direction per the contract’s dispute resolution process. In some cases, an escrow holder may file an interpleader action so a court can decide. Because every situation is unique, consider consulting a Georgia real estate attorney for any dispute.
Smart ways to protect your deposit
Follow these practical steps from contract to closing:
- Confirm the escrow holder before signing. Ask whether a closing attorney, title company, or broker’s trust account will hold your funds and request written escrow instructions.
- Deliver on time. Mark your deposit deadline on your calendar and send funds early if possible. Get a written receipt.
- Track everything. Keep copies of deposit confirmations, emails, and texts related to inspections, financing, appraisal, and title.
- Know your notice rules. Your contract will specify how to deliver notices to cancel or request repairs. Follow the method and timing exactly.
- Coordinate with your lender. Lenders often ask for proof and source of your earnest money as part of loan approval. Let them know early so you are not rushed later.
- Verify refundability. Clarify whether any separate payment is non-refundable. Some markets use fees that are different from earnest money. Make sure you know what is what before you pay.
Strategy to strengthen your offer without excess risk
You can write a competitive offer and still protect your deposit by using smart tradeoffs:
- Use a meaningful deposit that matches the property and market, not an arbitrary number.
- Keep key protections. Instead of waiving all contingencies, consider shorter timelines or targeted terms that still shield your deposit.
- Show readiness. Provide strong preapproval, proof of funds for closing, and a clear timeline. Sellers value certainty as much as a big deposit.
Tips for military PCS and VA buyers
If you are PCSing to Hunter Army Airfield or commuting to Fort Stewart, you may face tight timelines and long-distance logistics. Keep your deposit safe with a disciplined process:
- Get preapproved early and tell your lender when and how you will pay earnest money. Have documentation ready for the source of funds.
- Use clear calendars for inspection, appraisal, and financing milestones. Time zones and travel can eat into contingency windows.
- Work with local pros who understand Georgia forms, escrow practices, and how to coordinate with closing attorneys.
These steps help you compete for the right home while protecting your cash if plans change within your contract rights.
Common mistakes to avoid
- Missing the deposit deadline. Late delivery can weaken your position or open the door to backup offers.
- Waiving protections without a plan. Know the risk if you waive an inspection or financing contingency.
- Confusing fees. Earnest money is usually refundable per contract contingencies. Some other fees in certain markets are not. Verify terms in writing.
- Skipping documentation. If a dispute arises, clear written records of notices and timelines matter.
How Trophy Point helps you
You do not have to navigate earnest money alone. Trophy Point Realty Group combines expert buyer representation with real-world transaction experience across Savannah and Chatham County. We help you:
- Calibrate your deposit using current neighborhood norms and price tiers.
- Structure contingencies and timelines that align with your goals and risk tolerance.
- Coordinate with closing attorneys, title companies, and your lender for smooth escrow handling.
- Track deadlines and deliver precise notices so your protections hold.
If you are a military family, we pair VA loan know-how with disciplined PCS logistics so you can compete confidently and close on schedule.
Ready to buy in Savannah or planning a PCS move? Get clear, practical guidance from a team that treats your deposit like it is our own. Connect with Trophy Point Realty Group to get started today.
FAQs
What is earnest money in a Georgia home purchase?
- It is a good faith deposit that shows you intend to buy. It is held in escrow by a neutral party and typically applied to your purchase at closing under the contract.
How much earnest money should I offer in Savannah?
- It depends on price and competition. Many buyers use several hundred to several thousand dollars, and about 1 to 3 percent in competitive cases. Ask your agent for local comps.
Who holds earnest money in Chatham County?
- Common holders include closing attorneys, title companies, or brokers with trust accounts. Your purchase agreement will name the escrow holder and deadlines.
Can I get my earnest money back if financing falls through?
- If you have a valid financing contingency and follow the contract’s procedures and deadlines, you can typically recover your deposit.
What happens if the buyer and seller disagree about the deposit?
- The escrow holder will keep funds until there is a mutual written release, a court order, or direction under the dispute resolution terms. Some cases require interpleader.
Is earnest money the same as a due diligence or option fee?
- Not always. Earnest money is typically refundable under contract contingencies. Some due diligence or option fees in certain markets can be non-refundable. Confirm your contract terms in writing.
