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Some real estate agents say that 1% 2% is a good rule of thumb, in most cases. In a slower market, where sale properties are sitting idle with very few offers, you might get by with an earnest money deposit of $$5001,000.
Typically, there is no set deposit requirement. In California, for example, deposits are generally 1% to 3% of the sales price. California's buyers do not often put down more than 3% since most sign a liquidated damages' clause that limits the seller to 3% of the purchase price as damages in the event of a default.
Even if you are obtaining a mortgage that requires no down payment, such as through government programs, the seller will still expect an earnest money deposit. While buying a home without providing an earnest money deposit isn't impossible, it is quite challenging and very rare.
Here's the short answer. In a slow real estate market, where the seller isn't getting very many offers, you might only have to pay $$5001,000 in earnest money. In a fast-moving market, where there is more demand for homes, you might have to make a bigger deposit, perhaps up to 2% or 3% of the offer amount.
If you make an offer to buy a house and the seller turns it down, they are required to give you the earnest money back. This should be clearly stated in the purchase agreement. It only makes sense, when you think about it. You are offering this money as a good-faith deposit toward the purchase of the home.
The earnest money is not consideration for the contract. However, if the buyer does not deposit the earnest money with the escrow agent within a reasonable time after contract execution, the buyer would be in default, and the seller could exercise her rights under a default provision.
Generally, these funds are held in an escrow account managed by the buyer's real estate agent or the title company. The deposit is then applied to your closing costs or returned to you at closing. Earnest money funds are usually applied to a loan's closing costs or to the down payment.
Once the purchase is finalized, and the buyer and seller have agreed to any contingencies, all that's left to do is close. The earnest money deposit is often credited toward the buyer's closing costs or down payment. Read: Best Adjustable-Rate Mortgage Lenders. ]

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