Earnest Money In Exeter: How Much And When

Are you wondering how much earnest money you need to put down on a home in Exeter and when you have to pay it? You are not alone. Your deposit can help you win the house, but it also needs to protect you if things don’t go as planned. In this guide, you’ll learn typical deposit amounts in Exeter, when funds are due, how escrow holds your money, and the key contingencies that keep your deposit safe. Let’s dive in.

What earnest money means in California

Earnest money, also called an EMD or good‑faith deposit, is the money you put down with your offer to show the seller you are serious. It gives the seller confidence while you complete inspections, loan approval, and appraisal. If you close, the deposit is credited toward your purchase price at settlement.

Most California purchases use standard contracts that set the deposit amount, where it goes, deadlines, and what happens if either side defaults. Deadlines matter. If you miss a contingency date or fail to send a required notice, you can put your deposit at risk. Always follow the timelines in your specific contract.

Typical deposit amounts in Exeter

Exeter and greater Tulare County tend to be more affordable and less heated than many coastal markets. That usually means more modest deposits. Common local ranges include:

• Lower‑priced or less competitive listings: about $1,000 to $3,000.
• Mid‑range single‑family homes: roughly 1 to 2 percent of the price (often $2,000 to $10,000).
• Multiple offers or highly sought‑after homes: consider 3 percent or more to stand out.

Sellers and listing agents set expectations, so your strategy should match the current Exeter market and the specific property. Your agent can confirm what is customary before you write the offer.

When your deposit is due

On many California contracts, the initial deposit is due shortly after the seller accepts your offer, commonly within 3 business days. The exact timing will be in your contract. Some offers also include a second deposit that is due later, sometimes tied to a specific date or the removal of contingencies.

Plan for funds to clear into escrow by the deadline. Wire transfers and electronic payments are common. Always verify wiring instructions by calling the escrow office using a known, trusted number to avoid wire fraud.

Where your money is held

Your earnest money is typically placed in a neutral trust account held by an escrow or title company. In some cases, it can go into a real estate broker’s trust account. Either way, these funds are safeguarded and released only according to written escrow instructions or a mutual release signed by both parties.

You should receive a written receipt and an escrow number. At closing, your deposit will appear as a credit on your settlement statement.

When you can get it back

You can usually recover your earnest money if you cancel within your agreed contingency periods and follow the contract’s notice rules. Common protections include:

• Inspection contingency: If you cancel within the inspection window as allowed, you typically get a full refund.
• Loan contingency: If your loan is denied despite good‑faith efforts and you cancel within the loan contingency period, your deposit is usually refundable.
• Appraisal contingency: If the home does not appraise at the contract price and you cancel under the appraisal contingency, you can generally get your deposit back.
• Title or seller breach: If the seller cannot deliver clear title or fails to perform, you can typically cancel and receive a refund.

Mutual agreement to release funds is also possible at any time, as long as both sides sign instructions to escrow.

When you could lose it

Your deposit is at risk if you cancel after waiving or missing key contingency deadlines, or if you default without a contract‑allowed reason. Examples include:

• Waived or expired contingencies followed by a buyer cancellation.
• Failure to close on time without a protected cause.
• Missing a required written notice to cancel within the deadline.

If there is a dispute, escrow will usually hold funds until both parties sign a release or a mediator, arbitrator, or court directs the outcome.

How to write a strong, safe offer

You can make your offer competitive while protecting your deposit. Consider these options:

• Increase the deposit amount but keep inspection, loan, and appraisal contingencies.
• Keep contingency timelines tight but realistic so you can still complete due diligence.
• Include a strong lender pre‑approval and be responsive with documents.
• Offer flexibility on closing date to match the seller’s needs.

Some buyers offer non‑refundable deposits in bidding wars. This is high risk. If the sale falls through for a buyer‑side reason after you remove protections, you are more likely to lose that money. Discuss the risks carefully before you go that route.

Step‑by‑step timeline in Exeter

Use this quick checklist to stay on track:

• Pre‑offer

  • Get a solid pre‑approval, not just prequalification.
  • Decide on a realistic deposit range based on Exeter norms and the home’s demand.
  • Include the escrow or title company name in your offer.

• Offer and acceptance

  • Specify your initial deposit and any second deposit with exact deadlines.
  • Set clear contingency periods for inspection, loan, and appraisal.
  • Deliver the initial deposit on time and get a written receipt with your escrow number.

• During contingencies

  • Schedule inspections immediately and share requests within the deadline.
  • Submit all documents to your lender and order the appraisal right away.
  • Track your calendar for contingency removals and notices.

• If issues arise

  • Use the contract’s notice procedures exactly if you need to cancel.
  • Keep proof of all notices and dates.
  • If a dispute happens, expect escrow to hold funds until both parties agree or a neutral decision is made.

Common mistakes to avoid

• Sending funds late or to the wrong account. Always verify escrow details by phone and send early enough to clear.
• Waiving contingencies without a plan. You can shorten timelines and still keep protection.
• Assuming a refund without a written notice. Follow the contract’s process for cancellations.
• Not naming the escrow company in your offer. This slows deposits and adds risk.

Ready to move forward in Exeter?

A smart deposit strategy can help you win the home and keep your money protected. If you want local guidance on deposit amounts, timelines, and contingency planning tailored to your goals, connect with Ruben Olguin. Schedule a free consultation and get a clear plan for your next offer in Exeter.

FAQs

How much earnest money is typical for Exeter buyers?

• For lower‑priced homes, about $1,000 to $3,000 is common. For many mid‑range homes, expect roughly 1 to 2 percent of the price, and consider 3 percent or more in multiple‑offer situations.

When is the deposit due after offer acceptance in California?

• Many contracts require the initial deposit within about 3 business days of acceptance. Your exact deadline is in your purchase agreement, so confirm and send funds early.

Where should I place my earnest money in Tulare County?

• Most buyers deposit funds with a named escrow or title company’s trust account. Broker trust accounts are also used, but you should receive a written receipt and prompt transfer to escrow.

Can I get my deposit back if my loan is denied in Exeter?

• Usually yes if you have a loan contingency, act in good faith, and cancel within the contingency period according to contract instructions.

What happens if the seller refuses to release my earnest money?

• Escrow typically holds funds until both parties sign a release or a mediator, arbitrator, or court issues a decision. Your agent can guide you on next steps.