Buying in Bothell and heard the term “earnest money” tossed around? You are not alone. This deposit is a small part of your offer with a big job: it shows you are serious and helps set the tone for the entire deal. In a market that spans both King and Snohomish counties, knowing how earnest money works in Washington can help you write a confident, protected offer.
In this guide, you will learn what earnest money is, who holds it, typical amounts in Bothell, and how common contingencies can protect your deposit. You will also get a practical checklist to use before you write. Let’s dive in.
What earnest money is in Washington
Earnest money is your good‑faith deposit after both parties accept a purchase and sale agreement. It signals commitment to the seller. If the sale closes, the deposit is credited to your cash to close, such as your down payment or closing costs.
It is not a separate fee. It becomes part of the purchase proceeds at closing. The amount and handling are set by the contract you sign.
Who holds the deposit and when it is due
In Washington, earnest money is typically placed with the escrow or title company named in the purchase agreement. Less commonly, it may go to the listing brokerage’s trust account if that is what both sides agree to. Escrow and title companies follow state law and the contract for holding and releasing funds.
Your contract sets the deadline to deliver funds. In local practice, buyers often have only a few business days after mutual acceptance to get the deposit in. The exact timing is contract specific, so mark that date and plan your delivery method early.
Wire safety: protect yourself from fraud
Wire‑fraud attempts do occur in Washington closings. Follow these steps before sending any money:
- Call the escrow or title company at a phone number you find on their official website or your signed documents. Confirm wire instructions verbally.
- Never rely on wiring details sent by email without verification. If an email changes wire instructions, treat it as suspicious and call to confirm.
- Ask your escrow contact about acceptable alternatives, such as a cashier’s check, if you prefer not to wire.
How much earnest money in Bothell
There is no one-size-fits-all number. In Western Washington and around Bothell, buyers often choose a percentage or a flat amount to match the property and competition level.
- Balanced markets often see deposits around 1 percent of the purchase price.
- Slower markets can be closer to 0.5 percent.
- Hot or competitive situations sometimes push deposits to 2–3 percent or higher.
- Many buyers also use flat-dollar figures. For example, several thousand dollars on entry or mid-price homes, with higher deposits on higher-priced listings.
Sellers consider your deposit alongside your contingencies and your financing strength. A larger deposit can signal confidence. Protections in your contract determine how safe that money is if things change.
Example scenarios (for illustration only, November 2025)
- First-time buyer, balanced conditions: If you offer 1 percent on a $700,000 home, your deposit would be $7,000. Your inspection and financing contingencies help protect that money if you act within deadlines.
- Competitive offer, stronger signal: You could put up 2 percent ($14,000 on a $700,000 home) and pair it with a shorter deposit delivery window. You would still rely on contingencies for protection.
These are examples, not market guidance. Always discuss current norms for your Bothell neighborhood and price point with your agent before deciding on an amount.
Contingencies that protect your deposit
Contingencies are contract clauses that give you time to verify key items. When used correctly, they can allow you to terminate and receive a refund of your earnest money.
Inspection contingency
- What it does: Gives you a set inspection period to inspect, negotiate, or terminate.
- EMD effect: If you terminate within the inspection period as the contract allows, you typically receive your deposit back. If you miss the deadline, the seller may claim a default and seek the deposit per the contract.
Financing contingency
- What it does: Protects you if you cannot obtain the loan described in your offer within the agreed timeline.
- EMD effect: If you follow notice procedures and timelines, termination under this contingency generally results in a refund. Strong preapproval and clear lender conditions reduce risk.
Appraisal contingency
- What it does: Protects you if the lender’s appraisal comes in below the contract price. You can renegotiate, bring extra cash, or terminate.
- EMD effect: If you waive appraisal protection or add a valuation gap and then cannot close, your deposit may be at risk.
Title contingency
- What it does: Allows you to review title. If a title defect cannot be resolved under the contract terms, you may terminate.
- EMD effect: When used properly, this can support a refund if the issue is not cured.
Sale of buyer’s home contingency
- What it does: Lets you make the purchase dependent on the sale of your current home.
- EMD effect: If the contingency fails by its deadline and you terminate per the contract, your deposit is typically refundable. Note that sellers may prefer other terms in competitive markets.
Liquidated damages and disputes
Some standard forms allow the seller to elect the earnest money as liquidated damages if the buyer defaults. That means the seller can keep the deposit as the agreed remedy, based on the contract’s language. If a release is disputed, escrow usually needs mutual written instructions or a court order. Review remedy clauses with your agent, and speak with an attorney if you want legal advice.
Step-by-step checklist before you write an offer
Use this list to prepare and protect your deposit. Tailor it to your situation.
Confirm your buyer profile
- First-time buyer, no sale needed, or move-up buyer who may need a sale contingency.
- Make sure you have proof of funds ready for your expected deposit.
Set your deposit amount
- Decide on a percentage or a flat-dollar figure based on current Bothell conditions for your price tier.
- Avoid non‑refundable deposits unless you fully understand the risk.
Choose escrow and deposit timing
- Name the escrow or title company in your offer and set a clear delivery deadline.
- Confirm acceptable delivery methods. Verify wire instructions only by phone using a trusted number.
Confirm contingencies and timelines
- Inspection period length and how you give notice to terminate.
- Financing contingency steps and lender conditions, with exact deadlines.
- Appraisal protection or any valuation gap details.
- Sale contingency, if needed, including key dates.
Review remedy clauses
- Note any liquidated damages language that could limit or define remedies.
- Understand what counts as default under your contract.
Coordinate with your lender and agent
- Obtain a strong preapproval or preunderwriting letter.
- If using an escalation clause, confirm how it pairs with your deposit and contingencies.
Prepare documentation
- Proof of funds for deposit and closing.
- Lender letter and any required addenda.
- A clean, complete offer package for the listing side.
Plan for total cash to close
- Remember that the deposit is credited at closing. Make sure you also have funds for the rest of the down payment and closing costs.
Practice wire security
- Call to verify instructions, never rely on unverified emails, and confirm account numbers digit by digit.
Ask your agent these questions
- What deposit amounts are typical for similar Bothell homes right now?
- Will a larger deposit or firmer timelines help more than trimming contingencies?
- Which escrow company will hold funds, and what are their deposit procedures?
- If I need to terminate, what exact notice preserves my deposit?
Bothell specifics to keep in mind
Bothell spans King and Snohomish counties, and practices can vary by neighborhood and price tier. The King County portion sometimes moves at a different pace than nearby areas, so confirm current norms for the specific listing you want. Express your deposit both as a percentage and a dollar amount so the listing side can quickly gauge your offer.
Most losses of earnest money come from missed deadlines or incorrect notices, not from the size of the deposit. Track dates closely and follow your contract’s instructions for giving notice. If you are unsure about a step, ask your agent to confirm the process with escrow in writing.
Make your offer strong and safe
A well-sized deposit, a clear delivery plan, and the right contingencies can make your Bothell offer both compelling and protected. Pair that with a strong lender letter and timely communication, and you will present as a prepared buyer.
If you want guidance tailored to the Bothell market, you can lean on a local team with $345M+ in sales, 595+ closings, and 50+ years of combined experience. Schedule a quick consult with Team NSRG to map out your deposit amount, timelines, and protections for your next offer.
FAQs
What is earnest money and does it go toward my closing?
- Earnest money is a good‑faith deposit after offer acceptance, and it is typically credited toward your down payment or closing costs at closing.
When is earnest money due in Washington for a Bothell purchase?
- Your contract sets the deadline, and local practice is often within a few business days after mutual acceptance. Confirm your exact date and delivery method.
Who holds earnest money in a Bothell transaction?
- Usually the escrow or title company named in your contract holds the funds in a trust account. Sometimes a listing brokerage trust account is used if agreed.
Can I lose my deposit if the appraisal comes in low?
- If you keep appraisal protection, you may terminate or renegotiate. If you waive it or use a valuation gap and cannot close, your deposit may be at risk.
How do inspection deadlines affect my deposit?
- If you terminate within the inspection period per the contract, you typically receive a refund. Missing the deadline can expose your deposit to a seller claim.
What happens if the seller and I disagree about releasing the deposit?
- Escrow usually needs mutual written instructions or a court order. Your contract may outline mediation, arbitration, or court steps for disputes.
Does a bigger deposit make my offer stronger in Bothell?
- A larger deposit can signal commitment, but sellers weigh it against contingencies and financing strength. The right balance often wins.
Do I have to wire the deposit or can I use a check?
- Ask your escrow company what they accept. If you wire, verify instructions by phone using a trusted number to avoid fraud.
