Wondering how much earnest money to put down on a Burlingame home? In a fast-moving San Mateo County market, you want to show strong commitment without taking on unnecessary risk. This guide breaks down how earnest money works in California, what local sellers expect in Burlingame, how refunds actually work, and how to keep your funds safe. Let’s dive in.
Earnest money basics
What it is and why it matters
Earnest money is a good-faith deposit you make after your offer is accepted. It shows the seller you are serious and gives the contract teeth. If the sale closes, your deposit is credited toward your down payment and closing costs. The purchase agreement controls what happens to the deposit at every step.
Who holds your deposit
In California, your deposit usually goes to a neutral escrow or title company named in the contract. Sometimes it is delivered to the listing broker who then deposits it into escrow. Escrow holds the funds under the written instructions in your purchase agreement and releases them only with proper direction.
How you pay the deposit
You can fund your deposit by cashier’s check, personal check, or wire transfer. Escrow will verify that funds clear before counting them as good funds. If you wire, use verified instructions and confirm details by phone with the escrow company to avoid fraud.
Burlingame market norms
Typical deposit ranges
On the Peninsula, sellers expect deposits that signal real commitment. In many Burlingame offers, buyers propose an earnest money deposit of about 1 to 3 percent of the purchase price. In multiple-offer situations, some buyers go higher, sometimes 3 to 5 percent, to stand out. On very high-priced listings, a flat amount is common, such as $25,000 to $100,000 or more.
Local examples
These examples are illustrative and for easy math:
- $1,200,000 purchase price: 1 percent is $12,000; 2 percent is $24,000.
- $2,500,000 purchase price: 1 percent is $25,000; 3 percent is $75,000.
- Cash offers: Even without a loan, sellers often expect a meaningful deposit, for example $50,000+, to show you will perform.
Because Burlingame prices are high, even a 1 percent deposit can be a large dollar figure. Sellers read that as a sign you are well prepared.
Timing and escrow mechanics
When your deposit is due
Your purchase agreement sets the deposit deadline. In many California offers, the deposit is due within 2 to 3 business days after acceptance. Some buyers shorten this to 24 hours to strengthen their offer. Whatever the deadline, plan the transfer method in advance so you can meet it.
How the funds are applied
Escrow holds your deposit and credits it to you at closing. You will see it on your final settlement statement, lowering the total cash you need to bring in at the end.
If the sale does not close
If you cancel within your contract’s contingency periods and follow the notice rules, you typically receive your deposit back. If you breach after removing contingencies, the seller may claim the deposit as damages, or pursue other remedies depending on the agreement. If there is a dispute, escrow usually keeps the funds until both sides instruct or a legal directive arrives.
Contingencies and your refund rights
Key contingency windows
Common buyer protections include inspection, loan, and appraisal contingencies. Your offer will set the timelines. If you cancel within a contingency period and send notice the way the contract requires, your deposit is typically refundable. Miss a deadline or remove a contingency too soon, and your risk goes up.
Tips to protect your deposit
- Track every contingency date on a shared calendar and set reminders.
- Send cancellation notices in writing and confirm receipt.
- Keep records of all emails and signed forms.
- Ask your agent to confirm the exact method and address for any notice.
Offer strategy with EMD
Ways to strengthen your offer
- Offer a larger deposit within your risk comfort.
- Shorten the deposit timeline, for example within 24 hours.
- Keep key protections but tighten timelines if you can complete diligence quickly.
Balance risk and protection
You can pair a strong deposit with smart contingency management. Some buyers shorten the inspection window and complete disclosures review fast, then remove that contingency with confidence. Others choose to keep the loan contingency until the lender clears key items. The goal is to signal commitment while keeping meaningful outs if a material issue appears.
Coordinate with your lender
Large deposits must be documented. Your lender will verify the source of funds and may ask for bank statements or gift letters. Discuss your deposit amount and timing with your lender before you write the offer so you can fund quickly and cleanly.
Need a second set of eyes on your EMD strategy, contingency timing, or wiring plan? Connect with local advisor Bob Bredel for a quick, practical walkthrough tailored to Burlingame.
Wire transfer safety
Wire fraud is a real risk in real estate. Use this checklist every time you move money:
- Call the escrow company using a phone number from their official website or your signed escrow instructions. Confirm wiring instructions by voice.
- Be suspicious of any email that changes instructions or bank details.
- Verify the receiving account name exactly matches the escrow or title company.
- Use the escrow company’s secure portal when available.
- Enable two-factor authentication on your email and bank accounts.
- After you wire, confirm receipt with escrow the same day.
- If you suspect fraud, contact your bank and local law enforcement immediately.
Step-by-step timeline
- Offer accepted. Your deposit clock starts based on the contract.
- Deliver deposit. Send your check or wire to escrow within the deadline. Keep the receipt.
- Begin diligence. Start inspections, loan underwriting, and appraisal.
- Review disclosures. Ask questions early and document answers.
- Remove or manage contingencies. Only remove once you are ready.
- Final loan approval. Lender clears conditions and issues loan docs if financed.
- Closing. Your deposit is credited on the final statement.
Common mistakes to avoid
- Sending a wire without verbal confirmation from escrow.
- Assuming the deposit is refundable without checking the contract.
- Missing a contingency deadline by a day.
- Promising a 24-hour deposit but not having funds ready.
- Over-sizing the deposit without understanding your risk tolerance.
How much should you put down in Burlingame
A practical target for many buyers is 1 to 3 percent of the price, adjusted for how competitive the listing is and your comfort with risk. In multiple offers, consider whether a larger amount or a faster deposit timeline will help more than giving up key protections. Let the property, your diligence plan, and your financing guide the final number.
If you want local perspective on current Burlingame norms, offer strength, and safe wiring steps, reach out to Bob Bredel for a quick strategy call.
FAQs
What is earnest money in California home buying
- It is a good-faith deposit held by escrow after acceptance, credited to your closing costs, and governed by your purchase agreement.
How much earnest money do Burlingame sellers expect
- Many offers include 1 to 3 percent of the price, with higher amounts in multiple-offer scenarios or on premium listings.
When is my earnest money deposit due
- Your contract controls the deadline. Common practice is within 2 to 3 business days after acceptance, though some buyers offer 24 hours.
Can I get my deposit back if I cancel
- Yes, if you cancel within your contingency periods and follow the contract’s notice rules. After contingency removal, your risk of forfeiture increases.
Does a larger deposit help my offer win
- It can. A larger or faster deposit signals commitment, but pair it with smart contingency strategy to avoid unnecessary risk.
What is the safest way to send my deposit
- Verify wiring instructions by phone using a trusted phone number, confirm account details, and avoid acting on last-minute email changes.
