Wondering how much earnest money you need to offer on a Marietta home and how to keep it safe? You are not alone. That small deposit plays a big role in how strong your offer looks and whether you can get your money back if things change. In this guide, you will learn typical local amounts, who holds the funds, how Georgia contracts treat refunds, and smart ways to stay competitive without taking on unnecessary risk. Let’s dive in.
Earnest money basics
Earnest money is a good-faith deposit you make when you go under contract. It shows the seller you are serious and gives them certain remedies if you breach the agreement. The amount and handling are set by your purchase contract, which in Georgia is often a Georgia Association of REALTORS (GAR) form.
You usually get this money credited back to you at closing. If the deal does not close, what happens next depends on your contract and whether you follow its deadlines and notice requirements.
Typical amounts in Marietta
Local practice across Marietta and the Atlanta metro commonly uses either a fixed dollar amount or a percentage of the price.
- Common ranges: $1,000 to $5,000 for many single-family homes. About 1% of the purchase price is a widely used rule of thumb. In competitive situations, buyers sometimes offer 2% or more.
- What affects the amount: Purchase price, market conditions, your risk tolerance, and seller expectations. In multiple-offer scenarios, buyers often raise the deposit or tighten timelines.
- No set “required” number: The amount is negotiated between buyer and seller. Your agent can help you pick a number that fits the home and current competition.
How Georgia contracts handle it
In Georgia, many transactions use GAR forms. These are fill-in-the-blank agreements, so the exact deadlines, escrow instructions, and remedies depend on what your contract says.
Who holds your deposit
Earnest money is typically held by a named escrow holder such as a title company, a closing attorney, or a brokerage. The escrow holder keeps the funds in a trust account and disburses them only as allowed by the contract or by written instructions from both parties.
Always get a written receipt showing the date, amount, and the escrow holder’s name. Keep it with your contract paperwork.
When you must deliver
Your contract will set a deadline, such as within 2 to 3 business days of acceptance. Follow that timeline exactly. If you miss it, the seller may have remedies that can include terminating the contract if allowed by your agreement.
What your contract should say
GAR contracts usually state that earnest money is credited to you at closing and outline when it is refundable versus forfeitable. They also explain how funds are handled if the deal does not close, which can involve mutual written releases, mediation or arbitration, or court orders. Always read the executed contract and follow it closely.
Refunds vs. forfeiture in Georgia
The key to keeping your deposit is understanding the contract’s contingencies and sending timely written notices.
Due diligence and inspections
Many Georgia contracts include an inspection or due-diligence period. If you terminate properly within that period, you are typically entitled to a refund of your earnest money. If you wait until after the deadline, you may lose that right.
Georgia does not universally use a separate non-refundable “option fee.” If any non-refundable amount is proposed, it should be clearly written and understood before you sign.
Financing and appraisal
If your contract includes a financing contingency and you cannot obtain your loan under the contract terms, you can usually terminate and get a refund, provided you give the required notice on time. Appraisal outcomes follow the contract language. Some agreements allow termination if the appraisal comes in low, while others require negotiations or additional funds. Notice and timing are critical.
If a buyer breaches
If a buyer fails to close without a valid contractual reason, the seller may be able to keep the earnest money as liquidated damages or pursue other remedies, depending on what the contract provides and what the seller elects. The language in your specific agreement controls the outcome.
Disputes and escrow releases
If buyer and seller disagree about who should receive the deposit, the escrow holder will usually keep the funds until there is a mutual written release, a court order, or other instruction allowed by the contract. Expect the escrow holder to require written direction to disburse funds.
Make a strong but safe offer
You can signal commitment without taking on unnecessary risk. Here is how to strike the balance:
- Align your deposit with local expectations. For many Marietta homes, $1,000 to $5,000 or about 1% is common. Increase it in competitive situations only if you are comfortable with the exposure.
- Set clear inspection and financing timelines in the contract. Protect your refund rights by giving yourself enough time to complete due diligence and receive loan feedback.
- Be careful with waivers. Waiving contingencies or posting very large deposits can strengthen an offer but increases risk. Weigh the tradeoffs with your agent.
- Deliver the funds on time to the named escrow holder and keep your receipt. Small administrative misses can create big problems later.
Step-by-step checklist for Marietta buyers
- Ask your agent what earnest-money range is typical for the neighborhood and current competition.
- Decide on an amount that balances competitiveness and your risk tolerance.
- Confirm the escrow holder and the exact deposit deadline in your offer.
- Define inspection/due-diligence and financing contingency windows clearly. Know the refund triggers.
- Send any termination, objection, or loan-denial notices in writing before deadlines. Verbal notices are not enough.
- Keep copies of the signed contract, deposit receipt, and all notice letters.
- Consult a real estate attorney if asked to sign non-standard refund or forfeiture terms or if a dispute arises.
Common mistakes to avoid
- Missing the deposit deadline or delivering to the wrong place.
- Assuming you can terminate after a deadline passes.
- Relying on verbal agreements instead of written notices.
- Agreeing to non-refundable terms without understanding the risk.
- Skipping a receipt for your deposit or misplacing documentation.
Work with a local advocate
In Marietta, small contract details and strict timing can make a big difference. A local, negotiation-focused team can help you right-size the deposit, structure protective contingencies, and hit every deadline so your offer stands out while your money stays safe.
If you are planning to buy in Marietta or the northwest Atlanta suburbs, connect with Sterling Realty Partners, Inc. to map out a smart earnest-money strategy and a competitive offer. Schedule Your Consultation.
FAQs
What is earnest money in a Georgia home purchase?
- It is a good-faith deposit held in escrow that shows commitment, is credited to you at closing, and is governed by your purchase contract.
How much earnest money is typical in Marietta, GA?
- Many buyers offer $1,000 to $5,000 or about 1% of the price, and sometimes 2% or more in competitive situations.
When is earnest money refundable in Georgia?
- It is typically refundable if you terminate properly within the inspection or due-diligence period or under a financing contingency with timely notice, per your contract.
Who holds my earnest money deposit in Marietta?
- A named escrow holder such as a title company, closing attorney, or brokerage, as specified in the contract; always get a written receipt.
What happens if I miss the earnest money deposit deadline?
- The seller may have contract remedies that can include termination, depending on the terms; deliver on time and document receipt.
Can a seller keep my earnest money if I back out?
- If you cancel outside of your contractual rights, the seller may be able to keep the funds as liquidated damages or seek other remedies, based on contract language.
