Earnest Money In Ohio Offers, Explained

Buying in Hilliard and wondering how much earnest money to offer? You are not alone. This small deposit can strengthen your offer and protect you during key steps of the purchase. In a few minutes, you will learn how earnest money works in Ohio, what is typical in Franklin County, who holds the funds, and how to avoid losing your deposit. Let’s dive in.

Earnest money basics in Ohio

Earnest money is your good‑faith deposit once a seller accepts your offer. It shows commitment and is credited to your purchase at closing if the sale goes through.

Why it matters:

• It signals serious intent to the seller.
• It creates a fund that may be at risk if you default under the contract.
• It provides a clear process to hold money while contingencies are resolved.

In Ohio, standard purchase contracts include earnest‑money terms. Licensed brokers and escrow agents must place client funds in trust or escrow accounts and follow state rules. The contract can name who holds the deposit, such as a title company, the listing brokerage, or the buyer’s brokerage. You and the seller agree to these details in writing.

Typical Hilliard amounts to expect

Local practice in Franklin County follows common midwestern norms. For many single‑family homes, buyers often offer between 1 percent and 2 percent of the purchase price. On lower‑priced homes, you may see flat deposits instead of a percentage.

What buyers in Hilliard often use:

• Entry‑level homes: about 1,000 to 3,000 dollars.
• Mid‑market homes: roughly 1 percent of the price. Example: around 3,000 dollars on a 300,000 dollar home.
• Competitive situations or higher‑priced listings: 2 percent to 3 percent can be used. Example: 6,000 to 9,000 dollars on a 300,000 dollar home.

What influences the amount:

• Local competitiveness. Hotter markets often mean higher deposits.
• Price point and property type.
• Offer strategy. A larger deposit can strengthen your offer without raising the price.
• Contingencies. If you waive key protections, a seller may expect more earnest money.
• Lender documentation. Lenders ask for proof of funds but do not set the deposit amount.

Who holds the money and when to deposit

Your contract will name the escrow holder. In Ohio, common holders include a title or escrow company, the listing brokerage, or the buyer’s brokerage. It is common to deposit with the closing or title company once escrow is set up.

Timing matters. Most contracts require you to deposit promptly after the offer is ratified. Expect a deadline like 24 to 72 hours, or a stated number of business days. Missing the deadline can be a breach that gives the seller certain remedies, so mark the date and coordinate with your agent.

Best practices:

• Use the named escrow account and follow the written instructions exactly.
• Get a written receipt showing the date and account.
• Keep wire confirmations or certified check receipts.
• Verify any wiring instructions with a known contact to avoid wire‑fraud risk.

At closing, the escrow holder applies the deposit to your down payment and closing costs. Many short‑term deposits do not pay separate interest to the buyer, though this depends on the escrow holder’s policies.

How contingencies protect your deposit

Contingencies set conditions that must be met for the sale to move forward. If a contingency is not met and you follow the contract’s rules for notice and timing, your earnest money is usually refundable.

Common contingencies that affect refunds:

• Inspection. If you end the contract within the inspection period as allowed, your deposit is commonly refunded.
• Financing. If you cannot obtain the agreed loan and provide required documentation within the deadline, the deposit is generally refunded.
• Appraisal. If the appraisal is below the contract price and you terminate per the contract, the deposit is typically refundable.
• Title. If title defects cannot be resolved, you may terminate and receive a refund under the contract.

To preserve your refund rights, deliver written termination notices exactly as the contract requires and keep documentation like inspection reports or a lender denial letter.

When your earnest money could be at risk

Deadlines are critical. If you miss a contingency deadline or fail to give proper notice, you may lose the contractual right to a refund. If you default for reasons not covered by contingencies, the seller may claim the earnest money as liquidated damages if the contract allows, and could seek other remedies.

If the seller defaults, you can usually seek the return of your deposit and pursue remedies the contract provides. When there is a dispute, escrow holders often require a mutual release or a court order and may hold the funds until the dispute is resolved or interplead the money with the court.

A simple deposit checklist for Hilliard buyers

Use this quick list to keep your deposit safe and on track:

1. Confirm who will hold the deposit and how you will deliver it.
2. Verify wiring instructions by phone with a known contact before you send funds.
3. Deposit within the contract deadline and obtain a written receipt.
4. Track every contingency deadline in a shared calendar.
5. Keep copies of all notices, inspection reports, and lender letters.
6. Alert the escrow holder and your agent to any contract changes in writing.

Hilliard scenarios you might encounter

• Typical mid‑market purchase: You agree to buy a 325,000 dollar single‑family home and offer about 1 percent, or 3,250 dollars, as earnest money. If an inspection reveals major issues and you terminate within the inspection period as allowed, the deposit is returned.

• Competitive offer: You offer 2 percent, or 6,500 dollars, to stand out and waive the inspection contingency. If you later try to cancel for reasons not covered by the contract, you could lose the full 6,500 dollars.

• Financing denial with notice: Your loan is denied and you provide the lender’s denial letter within the financing contingency period. The escrow holder processes your refund after receiving the required release or instructions.

Strategies to choose the right amount

Set your deposit with local norms in mind. In many Hilliard offers, 1 percent of the purchase price or a flat 1,000 to 5,000 dollars is common. If you want to strengthen your offer in a competitive situation, consider moving toward 2 percent to 3 percent while weighing the added risk.

Think about your contingencies. Keeping inspection, financing, and appraisal protections gives you a path to a refund if you follow the contract’s rules. Waiving contingencies can help win a bidding war but increases your risk of losing the deposit if you back out.

Choose a neutral escrow holder. Using a title or escrow company is common and can reduce perceived conflicts. Whichever party holds the funds must follow Ohio trust and escrow rules. Get everything in writing.

Local takeaways for Hilliard buyers

• Expect to move quickly. Deposit deadlines are short, often within a few business days.
• Documentation wins. Receipts, notices, reports, and lender letters make refunds smoother.
• Read the contract. Exact timelines, notice methods, and remedies live there.
• Ask questions early. Clarify what happens to your deposit if plans change.

Ready for clear, local guidance?

If you want a steady hand through Hilliard’s offer process, you are in the right place. As a boutique advisor serving the northwest Columbus corridor, I pair careful analysis with attentive service so you understand your options, timelines, and risks before you sign. If you are buying, selling, or relocating, reach out to Deborah Parris for step‑by‑step support from offer to closing.

FAQs

What is earnest money in an Ohio home purchase?

• It is a good‑faith deposit you deliver after your offer is accepted, held in escrow and credited to you at closing if the sale completes.

How much earnest money is typical in Hilliard?

• Many buyers offer about 1 percent of the price or 1,000 to 5,000 dollars, with 2 percent to 3 percent used in competitive situations or at higher price points.

Who usually holds the earnest money in Franklin County?

• A title or escrow company commonly holds it, though the listing or buyer’s brokerage can also serve as the escrow holder if agreed in the contract.

When do I need to deposit the earnest money?

• Most contracts require you to deposit promptly, often within 24 to 72 hours or a set number of business days after ratification. Check your contract’s deadline.

Can I get my earnest money back after an inspection?

• Yes if you terminate within the inspection period and follow the contract’s notice rules. If you miss the deadline or notice requirements, a refund may be at risk.

What happens if my financing falls through?

• If you cannot obtain the agreed loan and provide the required documentation within the financing contingency period, your deposit is generally refundable.

What if the seller refuses to release my earnest money?

• Escrow holders often need a mutual release or a court order. Contracts may include mediation, arbitration, or allow the escrow holder to interplead the funds with the court.