Earnest Money Basics for Taylors Homebuyers

Putting in an offer on a Taylors home and wondering how much earnest money you should put down? You are not alone. First-time buyers often have questions about when it is due, who holds it, and what happens if a deal falls through. In this guide, you will learn how earnest money works in Greenville County, typical local ranges, South Carolina handling rules, key contingencies and timelines, and simple steps to protect your deposit. Let’s dive in.

What earnest money is

Earnest money is a buyer’s good-faith deposit that shows the seller you intend to move forward. It is sometimes called an earnest money deposit or EMD. The amount is negotiated and written into your purchase contract.

If you close on the home, your earnest money is credited to your costs at settlement. It can be applied toward your down payment or closing costs. It is separate from a lender’s escrow for taxes and insurance.

During the transaction, the funds are held in a designated trust or escrow account until they are released by written agreement, according to the contract, or by court order.

Typical amounts in Taylors

There is no single rule for how much to offer, but common local practices provide a helpful guide.

• For many entry-level homes, buyers often offer about 1,000 to 3,000 dollars.
• For mid-range and higher-priced homes, buyers commonly offer 3,000 to 10,000 dollars or about 1 percent or more of the purchase price.
• Market conditions matter. When inventory is tight and multiple offers are likely, larger deposits are common. When the market slows, smaller deposits may be accepted.

Examples to make it concrete:

• On a 200,000 dollar home, you might see 1,000 to 3,000 dollars in earnest money, though competitive situations can push that higher.
• On a 400,000 dollar home, 3,000 to 6,000 dollars is common, or about 1 percent at 4,000 dollars.

Your best number balances two goals. You want to strengthen your offer while keeping your risk manageable if the contract later falls through outside your protections.

How deposits are handled in South Carolina

In South Carolina, the purchase contract names who will hold the earnest money. Common escrow holders include the listing broker’s trust account, the closing attorney or settlement agent, or sometimes the buyer’s brokerage.

• Accepted payment methods often include personal check, cashier’s or certified check, and wire transfer. Always get a written receipt showing the amount, date, and escrow holder.
• Timing is set by the contract. Many local contracts call for delivery within a short window after ratification, often 24 to 72 hours. Read your exact deadline and plan ahead.
• Escrow holders keep client funds in a separate trust account and must follow state fiduciary and recordkeeping rules. You should receive confirmation of where your funds are held.

Contingencies that protect your deposit

Contingencies are contract clauses that let you cancel under specific conditions while keeping your earnest money. The timelines and notice procedures in your contract control your protections.

Common protections include:

• Inspection contingency. You can inspect the home and request repairs or cancel within the inspection period.
• Financing contingency. If you cannot obtain loan approval by the deadline, you can cancel as the contract allows.
• Appraisal contingency. If the appraisal is lower than the purchase price, you may have the right to renegotiate or cancel.
• Title contingency. If a title defect cannot be resolved, you can typically cancel.

Typical local timelines vary by contract and negotiation:

• Inspection window is often about 7 to 14 days.
• Financing or mortgage commitment is often about 21 to 30 days.
• Closings frequently land around 30 to 45 days.

To preserve your refund rights, follow notice rules exactly. Provide written notices within the deadlines and use the delivery method the contract requires.

When you get it back vs. when you could lose it

• Refundable. If you cancel during a valid contingency period and follow the contract’s steps and timelines, your earnest money is typically returned to you.
• Forfeiture. If you walk away after contingencies expire or otherwise breach the contract, the seller may be entitled to keep the deposit as liquidated damages or pursue other remedies based on the contract.
• Disputes. If there is a dispute over who should receive the funds, the escrow agent will generally hold the money until both parties sign a release or a court or arbitration decision directs the release. Some contracts require mediation or arbitration.

Step-by-step: Pay earnest money safely

Use this checklist to keep your deposit secure and compliant with your contract.

1. Confirm the amount and holder. Match the amount in your signed offer and verify the named escrow holder in the contract.
2. Mark your deadline. Many deposits are due within 24 to 72 hours of ratification. Put it on your calendar immediately.
3. Choose your method. Decide on personal check, cashier’s check, certified check, or a wire, based on what the escrow holder accepts.
4. Verify wiring instructions by phone. If wiring funds, call the escrow holder using a phone number you independently verify. Do not rely on email-only instructions.
5. Deliver funds and get a receipt. Keep a copy showing amount, date, and where the funds are held.
6. Track contingency dates. Calendar your inspection, appraisal, loan, and closing deadlines. Set reminders one to two days before each date.
7. Communicate in writing. Send required notices in writing and in the manner your contract mandates. Save proof of delivery.

Wire transfer safety tips

Wire transfers are common, but wire fraud is a real risk in real estate.

• Independently verify instructions. Call the escrow holder using a known, published number before sending any wire.
• Be alert for last-minute changes. Treat any email that changes wiring details as suspicious and confirm by phone.
• Use multi-step verification. Ask the escrow holder to confirm the receiving account name and last four digits while on the phone.
• Consider alternatives. If you prefer, ask whether a cashier’s or certified check is acceptable.

Real-world examples

• Example 1: A 300,000 dollar home in Taylors. You offer 3,000 dollars in earnest money, which equals about 1 percent. After inspections, you request repairs. The seller agrees, and you proceed. At closing, the 3,000 dollars appears as a credit toward your cash to close.
• Example 2: Appraisal comes in low. If your contract includes an appraisal contingency and you cannot reach new terms with the seller, you can cancel within the contingency window. When you follow the contract’s notice steps, your earnest money is typically refunded.
• Example 3: You change your mind after deadlines. If you decide not to proceed after the inspection and financing periods pass, the seller may keep your earnest money. The escrow agent will hold funds until a mutual release or a legal directive.

First-time buyer tips in Taylors

• Keep funds liquid. Plan your deposit from accessible cash rather than funds that take days to move.
• Balance strength and safety. A larger deposit can help your offer compete, but only offer what you are comfortable risking if protections expire.
• Read the contract. Focus on the earnest money clause, deadlines, and the exact notice requirements.
• Document everything. Keep receipts, emails, and delivery confirmations.
• Ask local pros. Discuss strategy with your agent and consider consulting a real estate attorney if you want added contract review.

Quick timeline checklist

• Earnest money due: Often within 24 to 72 hours after contract ratification, per your contract.
• Inspection period: Often about 7 to 14 days.
• Financing deadline: Often about 21 to 30 days.
• Closing: Frequently about 30 to 45 days.

Your specific contract controls every date. Put each deadline in your calendar and build in reminders so you never miss a protection window.

The bottom line for Taylors buyers

Earnest money is a powerful part of your offer. The right amount shows you are serious, and the right contract protections keep your deposit safe. When you understand timelines, follow notice procedures, and use secure payment steps, you can move forward with confidence in Taylors and across Greenville County.

If you want help tailoring your offer and deposit strategy to the current Taylors market, reach out to Laurel Caylor at Coldwell Banker Caine. Let’s connect and map out a plan that protects your interests and positions you to win.

FAQs

What is earnest money in a Taylors, SC home purchase?

• It is a good-faith deposit you pay after your offer is accepted, held in escrow and credited to your down payment or closing costs if you close.

How much earnest money do first-time buyers in Taylors typically offer?

• Many entry-level buyers offer about 1,000 to 3,000 dollars, while mid-range purchases often see 3,000 to 10,000 dollars or around 1 percent of the price, depending on competition.

Who holds earnest money in Greenville County, South Carolina?

• The contract names the escrow holder, often the listing broker’s trust account, a closing attorney or settlement agent, or sometimes the buyer’s brokerage.

When is earnest money due after my offer is accepted?

• Many local contracts require delivery within 24 to 72 hours after ratification, but your specific contract sets the exact deadline.

Which contingencies help protect my earnest money from forfeiture?

• Inspection, financing, appraisal, and title contingencies can protect your deposit if you cancel within the deadlines and follow the contract’s written notice rules.

Is a wire transfer safe for paying earnest money in Taylors?

• Wires are common, but verify instructions by phone using a known number, watch for last-minute email changes, and ask about cashier’s or certified check options.

What happens to my earnest money if the deal falls through after deadlines?

• If you breach the contract after protections expire, the seller may be entitled to keep the deposit. In disputes, escrow holders keep funds until a mutual release or legal decision.