How much earnest money should you put down on a Chandler home, and when could you lose it? If you are a first-time or move-up buyer, these are smart questions to ask before you write an offer. You want to stand out without putting your savings at risk. In this guide, you’ll learn typical Chandler amounts, what makes deposits refundable, key deadlines, and simple steps to protect your funds. Let’s dive in.
What earnest money is
Earnest money is your good-faith deposit that shows a seller you intend to close. In Arizona, it is typically delivered to the title or escrow company named in your purchase contract, not directly to the seller. The funds sit in escrow and are credited to your cash to close at settlement.
If the sale closes, the deposit goes toward your down payment and closing costs. If you validly cancel under written contract contingencies, the deposit is usually returned to you. If you default after contingencies expire, the seller may be entitled to some or all of the deposit based on the contract.
Typical amounts in Chandler
In many U.S. markets, earnest money often ranges from 1% to 3% of the purchase price. In Chandler and the East Valley, practical norms vary with market heat:
- Typical offer: about 1% to 2% of the price, or a few thousand dollars on lower-priced homes.
- Multiple-offer or very competitive homes: 2% to 5% or a larger flat amount, such as 5,000 to 25,000 dollars depending on price tier.
- Higher-priced or luxury homes: buyers may use larger flat deposits to signal strength.
A larger deposit can help your offer stand out, but it is only one part of the picture. Price, contingencies, and timing also influence the seller’s decision.
When you pay and key deadlines
- Deposit delivery: Your contract will set the deadline to deliver earnest money to escrow, often within 24 to 72 hours after acceptance. Get a receipt from escrow showing deposit and holder.
- Inspection period: Many Arizona contracts use a short due-diligence window, often about 7 to 10 days, but it is negotiable. If you cancel within this period according to the contract, the deposit is typically refundable.
- Appraisal and financing: If you are getting a loan, your contract usually includes a financing and appraisal contingency with its own deadline. If the home appraises below the price and you cannot bridge the gap or the seller will not adjust, you may be able to cancel within the contingency timeframe and recover your deposit.
- Closing: The title or escrow company holds the deposit until closing or until both parties sign a mutual release after a cancellation.
Refundable vs. at risk
Your deposit is generally refundable when you cancel under valid written contingencies and on time. It can be at risk if you miss deadlines or default. Common examples:
- Refundable:
- You cancel during the inspection period as allowed by the contract.
- You cancel under the financing or appraisal contingency within its deadline.
- The seller breaches the contract and you validly terminate.
- At risk:
- You default after contingencies expire.
- You do not provide required funds or loan approval and fail to cancel in time under a contingency.
If buyer and seller disagree about the deposit, the escrow holder may keep funds in place until both sign a mutual release or a dispute process (mediation, arbitration, or court) resolves it. Escrow will follow the contract and proper instructions.
Strategy tips for Chandler buyers
- Match your deposit to market heat: In a typical setting, 1% to 2% is common. In a bidding war, consider 2% to 5% if you are comfortable with the added risk.
- Keep your protections: Inspection and financing/appraisal contingencies are your main safeguards. Shortening or waiving them can strengthen your offer, but it increases the chance of losing your deposit.
- Track every date: Calendar your inspection deadline, appraisal/financing deadline, and deposit window. Set reminders a couple of days ahead.
- Document everything: Keep escrow receipts, inspection reports, and lender updates. If you cancel, do it in writing and before the deadline.
- Guard against wire fraud: Only wire to the escrow company listed in your contract. Confirm instructions by calling a known phone number for your escrow officer.
Step-by-step timeline
Get pre-approved so you can write a confident offer.
Write your offer with an earnest-money amount that fits the current Chandler market and your risk comfort.
After acceptance, deliver your deposit to the named title or escrow company within the contract deadline and get a receipt.
Schedule inspections right away and review reports within the inspection period.
Negotiate repairs or concessions if needed. Decide whether to proceed before the inspection deadline.
Your lender orders the appraisal. If value or loan issues arise, address them before the financing/appraisal deadline.
Clear final loan conditions, sign disclosures, and prepare cash to close.
Close escrow, get keys, and your deposit is applied to your closing funds.
Quick buyer checklist
- Get pre-approval before making offers.
- Ask your agent what deposit amounts are typical right now in Chandler.
- Confirm the escrow/title company and get a receipt for your deposit.
- Track inspection and financing/appraisal deadlines in writing and on your calendar.
- Never wire funds without verbally confirming instructions with the escrow officer.
- If you are unsure about contract language, consult your agent, their broker, or an attorney.
Common scenarios to expect
- Low appraisal: You can negotiate a price reduction, bring extra cash, or cancel under the contingency within the deadline if allowed by your contract.
- Multiple offers: A larger deposit and shorter, reasonable timelines can help, but keep enough contingency protection to manage risk.
- Tight closing timeline: Order inspections and appraisal immediately and keep close contact with your lender and escrow so no deadline slips.
Protect your deposit
- Know your contract: The Arizona purchase contract sets the rules for deposits, timelines, and remedies. Review the inspection, financing, and appraisal sections with your agent.
- Use mutual releases: If you cancel and the seller agrees, both parties will sign a mutual release so escrow can return funds.
- Keep communication tight: Have your agent coordinate with escrow, the inspector, and your lender so milestones stay on track.
Ready to move in Chandler?
If you want a calm, clear plan for your earnest money and offer strategy, Rebecca will walk you through each step, from deposit delivery to closing day. Reach out to schedule a friendly, no-pressure chat with Rebecca Smith Real Estate and get local guidance tailored to your timeline and budget.
FAQs
How much earnest money is typical in Chandler?
- For many offers, 1% to 2% of the price is common, and 2% to 5% can be used in strong competition depending on the home and market conditions.
Who holds my earnest deposit in Arizona?
- A licensed title or escrow company usually holds the funds, and you should receive a receipt confirming the holder and amount.
Is my earnest money refundable after inspections?
- If you cancel within the contract’s inspection period and follow the written process, it is typically refundable; after the deadline, it may be at risk.
What if the appraisal comes in low on my Chandler home?
- You may negotiate price, add cash, or cancel under the financing/appraisal contingency within its deadline to recover your deposit if permitted by the contract.
What puts my earnest money at risk?
- Missing contingency deadlines or defaulting after protections expire can put your deposit at risk based on the contract’s terms.
