Real Estate Glossary

Earnest money

/glossary/earnest-money
A deposit from the buyer to the seller, held in escrow, to demonstrate good-faith commitment to the purchase. Typically 1-3% of sale price. Cash buyers often submit earnest money within 1-3 days of contract signing.

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Reviewed by John Quigley · Founder, BuyHousesInCash · Last updated May 2026

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