If you're buying a home in Santa Clarita, Valencia, Saugus, Newhall, Stevenson Ranch, Canyon Country or Castaic you’ll likely be asked to submit “earnest money” with your offer—but what is it and how does it work?
Earnest money is a good faith deposit that shows you’re serious about buying the home. It’s held in escrow and applied toward your down payment or closing costs.
How Much Is Earnest Money?
- Typically 1% to 3% of the purchase price
- For a $750,000 home, that’s $7,500 to $22,500
When Is It Due?
- Usually within 1–3 business days after your offer is accepted
What Happens to It?
- Held in an escrow account until closing
- Credited back to you at settlement
Can You Lose It?
Yes—if you break the contract without a valid contingency (like financing or inspection), the seller may keep the deposit.
Local Tip:
In Santa Clarita, earnest money helps make your offer stand out—especially in multiple-offer situations. A higher deposit can show strength.
Need help making a smart offer? I’ll guide you through every step of the home buying process in Santa Clarita. Reach out anytime and follow me for more local tips.
Ready to make your next move in Santa Clarita?
Contact Tami Cicerello with The Cicerello Team at RE/MAX Of Santa Clarita — your local real estate expert with 36+ years of experience helping sellers and buyers reach their goals.
661–212–3413| 
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Written by Tami Cicerello, REALTOR® and local real estate expert serving Santa Clarita, Valencia, Saugus, Newhall, Stevenson Ranch, Canyon Country and Castaic.