Are you wondering how much earnest money you need to put down on a Greenbrae home and what happens to it once your offer is accepted? You are not alone. The deposit can feel confusing, especially when you are trying to write a competitive offer without taking on unnecessary risk. In this guide, you will learn how earnest money works in Marin County, what is typical in Greenbrae, when deposits are refundable, and how to use yours to strengthen your offer. Let’s dive in.
What is earnest money
Earnest money is your good‑faith deposit. You deliver it after you and the seller reach mutual acceptance to show you are serious about buying the home. The funds are held by an impartial escrow or title company and, if you close, they are credited toward your down payment or closing costs.
In California, including Marin County, the deposit becomes part of the purchase price and is accounted for on your closing statement. You do not hand your deposit to the seller. It is safeguarded by the escrow holder until the contract closes or is canceled according to the agreement.
Most Marin transactions use the California Association of Realtors Residential Purchase Agreement. That contract sets the deposit amount, the deadline to deliver it, how any additional deposit works, and what happens in the event of a dispute. Local custom matters, but the written contract controls.
Typical deposit amounts in Greenbrae
In practice, earnest money for financed purchases often ranges from about 1 to 3 percent of the price. In Marin’s more competitive situations, some buyers offer more to show strength. For Greenbrae and nearby Kentfield and Larkspur, you will commonly see deposits in the 1 to 3 percent range for standard, contingency‑protected offers.
For higher‑priced homes or very competitive listings, buyers sometimes increase the deposit or schedule an additional deposit after key milestones to stand out. For lower‑priced listings or for buyers who want more protection, a smaller initial amount, such as 5,000 to 25,000 dollars, paired with clear contingency windows can make sense.
Simple examples
- Example A: Offer price 1,200,000 dollars with a 2 percent deposit equals 24,000 dollars.
- Example B: Offer price 900,000 dollars with a 10,000 dollar deposit is about 1.1 percent.
- Example C: All‑cash, no‑contingency buyers may offer 3 to 5 percent or a larger lump sum, which is strong but increases risk.
What affects your deposit size
- Market heat in your micro‑area of Greenbrae or Kentfield
- Your financing versus cash
- Seller expectations and listing agent guidance
- Property type and price point
- Your risk tolerance and contingency plan
When deposits are refundable
Your deposit is typically refundable if you follow the contract and cancel within your contingency periods. The key is to track deadlines and exercise your rights in writing.
Common refundable situations
- Inspection contingency. You inspect, then request repairs or cancel within the inspection period as allowed by the contract.
- Financing contingency. Despite good‑faith efforts, your loan is not approved and you cancel within the stated timeframe.
- Appraisal contingency. The home does not appraise at the contract price. You can negotiate, contribute cash, or cancel within the appraisal window.
- Title or disclosure issues. If unresolved issues arise and the contract gives you the right to cancel, you can typically recover your deposit when you cancel properly.
Refunds depend on contract deadlines and your actions. If you keep your rights and act within the written agreement, escrow will normally return your deposit.
When a deposit can be forfeited
- You remove contingencies, then cancel for a reason not allowed by the contract. The seller may have a claim to your deposit as liquidated damages.
- You fail to deliver the deposit on time as required. The seller can declare default.
- You fail to close for reasons not covered by contingencies. The seller may seek your deposit, and in some cases pursue other remedies spelled out in the contract.
Disputes and resolution
The standard contract includes dispute resolution steps. If the buyer and seller disagree, escrow will follow the contract and may require mediation, arbitration, or a court order to disburse funds. Local counsel or an experienced Marin agent can help you navigate these procedures.
How deposits strengthen offers in Greenbrae
A thoughtful deposit strategy can help your offer stand out without putting you at unnecessary risk.
Why sellers value larger or prompt deposits
- They signal you are serious and less likely to default
- They show financial readiness when paired with a strong pre‑approval
- In multiple‑offer situations, they reduce the seller’s perceived risk
Smart ways to show strength
- Increase the earnest money percentage to show commitment
- Deliver funds quickly within the contract deadline
- Use a staged approach: an initial deposit, then an additional deposit when you remove key contingencies
- Pair the deposit with a current pre‑approval and proof of funds for closing costs
- Write shorter, realistic contingency windows that reflect local timelines
Understand the tradeoffs
- Bigger deposits create higher exposure if you waive or miss contingencies
- Waiving inspection or appraisal protections may make your deposit effectively non‑refundable
- If you want more protection, consider a smaller initial deposit with clear, reasonable contingency periods
Local scenarios to consider
- Competitive Greenbrae listing. You offer a 2.5 percent deposit with a 10‑day inspection window. This shows commitment while keeping inspection protection.
- Cash buyer from out of the area. You offer 3 percent and waive the loan contingency. This is strong but raises your risk if anything delays closing.
Timeline: where the deposit fits
- Offer accepted. Your contract sets the deposit amount and delivery deadline.
- Deliver initial earnest money. Funds go to the escrow or title company, often within a few business days, by wire or certified funds.
- Contingency periods run. Inspection, loan, and appraisal timelines begin. If written in the contract, an additional deposit may be due when you remove contingencies.
- Closing. Your deposit is credited toward your down payment or closing costs.
- If the sale cancels. If you cancel under a valid contingency within the deadline, escrow returns your funds according to the contract. If you cancel without a contractual basis, the seller may claim the deposit.
Greenbrae buyer checklist
- Confirm funds. Make sure money for the deposit is available and acceptable to escrow.
- Put it in writing. State the deposit amount and delivery deadline in your offer.
- Match the market. Set contingency windows that fit Greenbrae’s pace while protecting your interests.
- Deliver fast and verify. Send the deposit promptly by the method escrow requires, then confirm receipt.
- Track deadlines. Calendar inspection, loan, and appraisal dates. Know exactly how to remove contingencies in writing.
- Document everything. Save receipts, wire confirmations, inspection reports, lender updates, and any signed repair agreements.
- Ask about unusual terms. Consult a local expert before agreeing to special provisions like holdbacks or very short timelines.
Common mistakes to avoid
- Missing the deposit deadline. Wire or deliver funds immediately after acceptance and confirm with escrow.
- Removing contingencies too soon. Review the implications with your agent and lender before you waive protections.
- Assuming the deposit is non‑refundable. Read the Residential Purchase Agreement and understand the contingency clauses.
- Using the wrong funds. Some escrows may not accept large personal checks. Confirm acceptable methods before sending money.
- Relying on verbal promises. Only written agreements and signed addenda control the deposit.
Practical guidance for first‑time and move‑up buyers
If you are buying your first Greenbrae condo or moving up to a larger Kentfield home, start by deciding how much risk you are comfortable taking. From there, tailor your deposit and contingency plan to match the property and market conditions.
- For a standard, financed offer, a 1 to 3 percent deposit with clear inspection, loan, and appraisal windows is common.
- If the listing is hot, consider increasing the deposit or adding an additional deposit after inspections to show ongoing commitment.
- If protection matters most, use a smaller initial deposit and keep your contingency windows firm and realistic.
A well‑timed deposit, solid pre‑approval, and crisp communication can make your offer more compelling without overreaching on risk.
Final thoughts and next steps
Your earnest money is a powerful signal in Greenbrae and the greater Marin market. When you understand how it works, you can balance competitiveness with protection and move toward closing with confidence. If you want a tailored deposit and contingency strategy for your next offer, reach out to Marin Exclusive Homes to Book an Appointment.
FAQs
How earnest money works in Greenbrae
- Earnest money is a good‑faith deposit held by escrow, credited to you at closing, and governed by your written purchase agreement.
Typical deposit size for Greenbrae buyers
- Many financed offers use 1 to 3 percent of the price. You can increase this in competitive situations if you are comfortable with the risk.
When Greenbrae buyers can get deposits back
- If you cancel within an active contingency period, such as inspection, financing, or appraisal, the deposit is typically refundable.
Who holds the deposit in Marin County
- An impartial escrow or title company holds the funds, not the seller, in accordance with the contract.
Risks of waiving contingencies in Marin
- Waiving inspection or appraisal protections can make your deposit effectively non‑refundable if you later try to cancel.
Deposit delivery timing in California contracts
- The contract sets the deadline, often within a few business days after acceptance. Deliver promptly and confirm receipt.
Handling low appraisals in Greenbrae
- With an appraisal contingency, you can negotiate price, bring additional funds, or cancel within the deadline to protect your deposit.
Wiring earnest money safely
- Confirm wiring instructions directly with your escrow officer using known contact information. Verify before sending funds to avoid fraud.
