Buying in Sandy Springs and wondering how much earnest money you should put down? You are not alone. Earnest money can be the difference between winning a home and missing out, especially in North Fulton’s competitive spots. In this guide, you will learn what earnest money is in Georgia, typical amounts for Sandy Springs, when it is refundable, how it strengthens your offer, and a simple timeline and checklist to follow. Let’s dive in.
What is earnest money in Georgia
Earnest money is a good‑faith deposit you pay after your offer is accepted. A neutral escrow holder keeps the funds until closing or a valid termination under the contract. If you close, the deposit is applied to your purchase price or closing costs. If the deal ends under a covered contingency, your earnest money is typically returned.
In Georgia, the purchase contract sets the rules. Most residential deals use Georgia Association of Realtors forms that spell out the amount, who holds the funds, deposit deadlines, and what happens if either side defaults. There is no state‑mandated amount. The escrow holder is usually a title or closing company, a real estate attorney, or a broker’s trust account. Always confirm where to deposit funds and get a written receipt.
Typical Sandy Springs amounts
There is no one‑size‑fits‑all number, but these ranges are common in Sandy Springs and North Fulton:
- Entry‑level and many condos or townhomes: about $2,000 to $5,000.
- Mid‑range single‑family homes: roughly 1% to 2% of the purchase price.
- Competitive or higher‑priced listings: 2% to 3% or more to stand out.
Your best amount depends on price, competition, and your comfort with risk. Sellers also weigh your financing strength, requested concessions, and contingency timelines. The goal is to show you are serious without taking on more risk than your situation allows.
When your earnest money is refundable
Refundability depends on your contract and whether you act within the deadlines. The purchase agreement will include contingencies that can protect your deposit.
Common contingencies that protect you
- Inspection period to evaluate the home and request repairs or cancel within the window.
- Financing or loan contingency if your lender issues a denial within the set timeline.
- Appraisal contingency if the property appraises below contract price and you choose to terminate per the contract.
- Title, survey, or HOA document review periods if unacceptable issues arise.
- Any other specific contingency written into your offer, like the sale of your current home.
When a seller can keep it
- You back out after contingency deadlines expire without a contractual reason.
- You fail to deliver earnest money on time as required by the contract and the seller terminates per their rights.
- You breach the agreement and do not close. Some contracts allow the seller to keep the earnest money as liquidated damages.
How to protect your refund
- Track all contingency deadlines and send notices in writing before they expire.
- Keep records such as inspection reports and lender communications.
- Confirm escrow instructions and get receipts from the escrow holder.
How earnest money strengthens your offer
A larger earnest money deposit shows commitment. Sellers see it as a signal that you are unlikely to walk away without cause. In multiple‑offer situations, a stronger deposit can tip the scales in your favor.
Still, earnest money is just one part of the package. Sellers also look at price, type of financing, quality of pre‑approval, repair requests, and timing. If you prefer not to increase the amount too far, you can adjust terms, like tightening inspection days only if you are comfortable with the risk.
Example offer strategies
- Conservative: $2,000 earnest money, 10‑day inspection, standard financing timelines.
- Market‑average: 1% to 2% earnest money, 7 to 10‑day inspection, 21 to 30‑day loan contingency.
- Aggressive: 2% to 3% earnest money, 5 to 7‑day inspection, strong pre‑approval and shorter financing window. Some buyers pair this with appraisal‑gap coverage if they are prepared for it.
Earnest money timeline in Sandy Springs
Every contract sets its own dates. Here is a typical flow for local transactions so you know what to expect.
- Offer accepted, Day 0
- The contract states your earnest money amount, who holds it, and your delivery deadline.
- Deposit delivered, often within 24 to 72 hours
- Follow the contract’s exact deadline. Ask for a dated receipt from the escrow holder.
- Inspection period, commonly 5 to 10 days
- Schedule inspections quickly. You can negotiate repairs, accept the home, or terminate within this period if the contract allows.
- Appraisal ordered during financing
- If value comes in low, you may renegotiate, bring additional funds, or terminate if your contract permits.
- Financing contingency, often 21 to 30 days
- Your lender issues final approval or a denial. A documented denial within the window usually supports a refund.
- Title and HOA review
- If title or association issues are unacceptable and handled within the contract’s timeline, you can typically cancel and receive a refund.
- Closing, usually around Day 30 to 45
- Your earnest money is applied to your closing funds on the settlement statement.
Security tip: Always verify wire instructions by calling the escrow holder using a known phone number. Do not rely only on email.
Buyer checklist and best practices
Before you offer
- Review recent local activity to set a realistic earnest money amount.
- Get a strong pre‑approval so your financing supports your offer.
- Decide on contingency timelines that fit your comfort with risk.
At contract and deposit
- Confirm the escrow holder’s name, deposit method, and deadline in writing.
- Deliver funds on time and keep your receipt.
- Call to verify wiring instructions to avoid fraud.
During contingencies
- Book inspections immediately and track all deadlines.
- Send any termination or repair notices in writing before the period ends.
- Keep lender letters, appraisal reports, and email records organized.
If you want extra protection
- Ask about structuring the deposit so part is refundable during inspection and the rest becomes nonrefundable after the inspection period, if agreeable to the seller.
- Choose a reputable local escrow holder with clear disbursement instructions.
Buying in Sandy Springs is competitive, but a smart earnest money strategy can help you stand out without taking on unnecessary risk. If you want a confident plan tailored to your price point and timeline, connect with the local team that guides North Fulton buyers from offer to close with clarity and care. Reach out to Tatum McCurdy to get started.
FAQs
How much earnest money do Sandy Springs buyers usually put down?
- Many buyers put down about 1% to 2% of the purchase price, with $2,000 to $5,000 common on entry‑level homes and 2% to 3% or more on competitive or higher‑priced listings.
When is earnest money due after my offer is accepted in Georgia?
- Most contracts require delivery within a set window, often 24 to 72 hours, but your signed agreement controls the exact deadline.
Who holds earnest money in a Sandy Springs transaction?
- A neutral escrow holder such as a title or closing company, a real estate attorney, or a broker’s trust account holds the funds, as named in the contract.
Can I get my earnest money back if the appraisal is low?
- If your contract includes appraisal or financing protections and you act within the timeline, you can usually terminate and receive a refund.
Is earnest money the same as my down payment?
- No. It is a deposit held in escrow to show good faith, and at closing it is applied toward your purchase or closing costs.
