What Earnest Money Actually Protects for Redmond Buyers

I'm Holli Cobb, REALTOR® with REAL Broker in Redmond, and earnest money is one of the first things that catches new buyers off guard: a good-faith deposit, often around one to three percent of the purchase price here, that you put down when your offer is accepted. It doesn't disappear, it sits in a neutral escrow account and, if you close, gets applied to your down payment or closing costs. Between offer and closing, though, it's genuinely at risk if you don't understand the rules around it.

Once your offer is accepted and earnest money is deposited, the seller stops showing the home and is under contract with you, that's your place in line. Standard Oregon contingencies then give you a real window to have the home inspected, review title, and confirm financing, if something serious turns up within that window, you can typically cancel and get your deposit back. That's what the deposit is actually buying you: time to learn the truth about a house without losing your spot to someone willing to move faster and skip that step.

The real risk is backing out for a reason your contract doesn't protect, changing your mind after the inspection period closes because you found something you liked better, or missing a deadline. In either case, a seller can potentially keep your deposit as agreed-upon damages. It also ties up cash you might want for closing costs or a cushion during the 30 to 45 days it typically takes to close here, which matters if your reserves are already tight.

Right-size your deposit rather than over-committing to look strong. Understand exactly what your inspection, financing, and appraisal contingencies protect before you consider shortening or waiving any of them to compete. And keep your dates on a calendar, missing a deadline is the most common way buyers put their own deposit at risk, not a problem with the house.

If you want a plain-language walk-through of what your specific contract protects before you write an offer in Redmond, that's part of how I help you buy a home. Reach out and we'll go through it together.