Are you wondering how much earnest money you need to put down to buy a home in Fresno? You are not alone. This small but important deposit can make your offer stronger and protect you when handled the right way. In this guide, you will learn what earnest money is, how it works in Fresno, how much to offer, and how to keep it safe from contract to closing. Let’s dive in.
What earnest money is
Earnest money, sometimes called a good‑faith deposit, is the money you put down when you submit an offer. It shows the seller you are serious and ready to move forward. The funds are held in escrow and, if you close, they are credited to your down payment and closing costs. If the deal cancels under your contract protections, the deposit is typically returned to you.
How much to offer in Fresno
There is no fixed rule for the amount. In many California markets, a common guideline is 1% to 3% of the purchase price. In Fresno, the right amount depends on the neighborhood, price point, and how competitive the listing is. In balanced markets, buyers often stay near the low end of that range or use a flat dollar amount; in multiple‑offer situations, a higher deposit can help your offer stand out.
Factors that can increase your deposit
- Strong competition or multiple offers
- Cash offers or very few contingencies
- Higher-priced homes where a percentage equals a larger dollar amount
Factors that may reduce your deposit
- Limited liquid cash even with solid financing
- Properties that may need more inspection time
- Offers with broader contingency protections
Who holds your deposit and when it is due
In Fresno, your earnest money usually goes to an independent escrow or title company. Neutral escrow holders keep the funds and release them only according to written instructions. Your purchase agreement will set the deadline for delivery, often 24 to 72 hours after acceptance, and it will state how to deliver the funds.
If you wire the deposit, confirm instructions directly with the escrow company by phone to avoid fraud. Always request and save the escrow receipt.
When earnest money is refundable
While your contingencies are in place, your deposit is generally protected. If you cancel properly within an inspection, appraisal, loan, title, or HOA review contingency, the earnest money is typically refundable under the contract. Once you remove contingencies in writing, your deposit becomes more at risk if you do not close without a valid reason.
If a dispute arises about who should receive the funds, escrow will usually hold the money until both sides sign a release or a court, mediation, or arbitration decision instructs escrow on what to do.
Key contingencies that protect you
- Inspection contingency: Lets you investigate the property and cancel or renegotiate within the stated period.
- Loan or financing contingency: Protects you if your loan is not approved in time.
- Appraisal contingency: Gives you options if the appraised value comes in below the purchase price.
- Title contingency: Allows time to review the preliminary title report and request fixes.
- HOA and document review: For condos or HOA properties, gives time to review CC&Rs and financials.
Contingency removal must be done in writing per the contract. Do not remove contingencies until you are satisfied with your inspections, appraisal results, and lender approval.
A typical Fresno timeline
- Offer submitted: You include your proposed deposit amount and name an escrow holder.
- Offer accepted: You deliver the deposit to escrow by the contract deadline, commonly within 24 to 72 hours.
- Early escrow: You complete inspections and your lender orders the appraisal. Title paperwork is reviewed.
- Contingency removal: After satisfactory results, you remove contingencies in writing. This is the point when your deposit is more committed to the transaction.
- Closing: Your earnest money is applied to your closing costs or down payment.
Timing can vary. Common negotiating frames for contingency periods are often measured in days and can be adjusted to match market speed. Your agent will help set realistic dates.
How to protect your deposit
- Read your contract closely and track every deadline.
- Deliver your deposit on time and get a written receipt from escrow.
- Keep records of inspections, lender updates, and signed contingency removals.
- Avoid removing contingencies early just to win an offer unless you fully accept the risk.
- Verify wiring instructions by phone with escrow to prevent fraud.
- If you are unsure about a decision or a dispute, speak with your agent and, if needed, a local real estate attorney.
What your Fresno agent should do
A strong local agent will set clear deposit terms in your offer, recommend a trusted escrow holder, and make sure you meet every deadline. They will guide you on contingency timing, help you weigh the risks of a larger deposit, and keep a clean paper trail. You should expect straightforward advice about local norms by neighborhood, price tier, and property type.
Fresno takeaways for buyers
- Earnest money shows commitment and can strengthen your offer.
- In Fresno, many buyers start around 1% to 3%, then adjust for competition and cash on hand.
- Your deposit is usually safe while contingencies are active and properly used.
- Written contingency removal is the turning point for deposit risk.
- Clear timelines and communication with your agent and escrow reduce stress and protect your funds.
If you want personal guidance on deposit strategy for a Fresno or Clovis home, connect with Jack & Sherri Dubeau. You will get local insight on current norms, offer strength, and the best way to protect your earnest money from offer to closing.
FAQs
What is earnest money in a Fresno home purchase?
- It is a good‑faith deposit held in escrow that shows you are serious, is credited to your costs at closing, and is typically refundable if you cancel under valid contingencies.
How much earnest money do Fresno buyers usually put down?
- A common guideline is 1% to 3% of the price, adjusted for competition, property type, and your cash on hand.
When do I have to pay the deposit after my offer is accepted?
- Most contracts require delivery within 24 to 72 hours after acceptance, following the method stated in the agreement and escrow instructions.
When could a seller keep my earnest money?
- If you remove contingencies in writing and then fail to close without a valid contractual reason, the seller may be entitled to the deposit under the contract.
What happens if the appraisal is low in Fresno?
- If you have an appraisal contingency and cancel within the deadline, your deposit is typically refundable; if the contingency is removed, your deposit may be at risk if you cannot close.
Is an earnest money deposit the same as an option fee?
- No. California buyers usually rely on inspection and other contingencies rather than a separate option fee, which is more common in some other states.
