Thinking about writing an offer in Kirkland and wondering how earnest money really works? You are not alone. Your deposit is a small part of the offer that carries big weight with sellers and big implications for your risk. In a few minutes, you will understand typical deposit sizes, when funds are refundable, and how to stay competitive without putting too much at risk. Let’s dive in.
Earnest money basics in Washington
Earnest money is your good‑faith deposit after both parties sign the Purchase and Sale Agreement. It shows the seller you are serious and is usually applied to your purchase price and closing costs at closing. It is not a separate fee.
In Washington, the deposit is contract money governed by the Purchase and Sale Agreement, often the WB‑11 Residential Real Estate Purchase and Sale Agreement and addenda. The contract sets the amount, delivery timing, who holds the funds, and when the money can be released or forfeited.
Who holds the deposit
In typical Eastside practice, a neutral escrow or title company holds your earnest money. Less often, the listing brokerage holds it if both parties agree in writing. Your contract will name the holder and how you will deliver the funds.
Escrow follows the contract and escrow instructions for any release. If there is a disagreement between buyer and seller about who should receive the deposit, escrow often requires a signed release from both parties or a court order before disbursing funds.
How much to offer
On the Eastside, buyers commonly size deposits using either a flat number or a percentage of the price. You often see several thousand dollars for flat amounts, such as $5,000, $10,000, or $15,000. A common percentage guide is about 1 to 3 percent of the purchase price.
Amounts vary by property type, price point, and how competitive the market is. For higher‑priced Kirkland homes, deposits typically rise to signal commitment. In a multiple‑offer setting, a larger deposit and fast delivery can help your offer stand out, but make sure your contract protections match your risk tolerance.
Kirkland examples (illustrative only)
- $700,000 home: around 1 percent, or about $7,000, with a 7 to 10‑day inspection and a loan commitment around 21 days.
- $1.5M home: $15,000 to $30,000 or more depending on terms and competition.
- Competitive strategy: shorten an inspection to 5 days and deliver funds to escrow within 24 to 48 hours rather than making the deposit non‑refundable on day one.
Refundable periods
Your earnest money is generally refundable while valid contingencies are in effect and you follow the contract to terminate on time and in writing. Common contingencies include inspection, financing, and appraisal.
If you give timely notice to terminate under a contingency, escrow typically returns the funds according to the escrow instructions and the contract.
Non‑refundable shifts
Your deposit often becomes non‑refundable when you remove your remaining contingencies or miss a deadline to terminate. Examples include removing an inspection contingency or removing a financing contingency after receiving loan approval. If you later default, the seller may be entitled to keep the deposit under the contract’s remedies.
Some offers ask for a portion to become non‑refundable after mutual acceptance. This increases your risk. Only agree to non‑refundable terms if you fully understand the exposures and have a clear plan.
Contract terms to watch
The WB‑11 form and addenda control your deposit. Pay close attention to:
- Earnest money amount and whether additional deposits are required later.
- Who holds the funds and how you must deliver them (wire or check) and by when.
- Inspection, financing, and appraisal deadlines, plus how to deliver notices.
- Any language about liquidated damages or seller remedies.
- Dispute resolution steps like mediation or arbitration.
There is no universal statutory refund window. The signed contract and dates you negotiate are what matter.
Competitive and protected
You can stay competitive in Kirkland without taking on unnecessary risk. Consider these tactics:
- Offer a larger deposit that is still protected by your contingencies.
- Shorten your inspection or loan commitment timelines instead of making the deposit immediately non‑refundable.
- Use a price escalation or a higher price paired with standard contingencies.
- Consider staged deposits, such as an initial refundable amount and a second deposit due after inspection, if the seller agrees.
- Keep communication clear and on time. Put reminder dates on your calendar for every contingency period.
Delivery and wiring best practices
Speed helps in competitive situations, but protect your money:
- Name the escrow company in the contract and confirm the delivery deadline. In strong markets, sellers may expect funds at escrow within 24 to 72 hours of mutual acceptance.
- Get an escrow receipt showing the amount, date, and who holds the funds.
- Always verify wire instructions by calling the escrow company using a trusted phone number you obtain independently. Do not rely only on email instructions.
Deposit delivery checklist
Before you send your earnest money, confirm:
- Holder: the exact escrow or title company named in your contract.
- Amount: initial deposit and any additional deposits.
- Deadline: when escrow must receive the funds and the accepted form of payment.
- Instructions: verified wiring details by phone with a known number.
- Receipt: written confirmation from escrow that funds were received.
- Triggers: which contingencies protect the deposit and how to send notices.
- Calendar: reminders for inspection, appraisal, and financing deadlines.
Kirkland market context
Kirkland is part of the Eastside, where prices are often higher than King County overall and well‑located homes can draw multiple offers when inventory is tight. In a strong seller’s market, larger or faster deposits can add credibility. When the market softens, sellers may be more flexible on size and timing.
Check recent local metrics like active listings, median days on market, and percent of list price received before you write. Adjust your deposit size and timing to fit current conditions.
Talk with a local advisor
The right deposit strategy balances your competitiveness with your protection. A detail‑driven advisor can size your deposit, set the right timelines, and negotiate clear language so you are confident from offer to closing. If you want a Kirkland‑focused strategy that blends market insight with careful contract work, reach out to Josiah Willis.
FAQs
What is earnest money for a Kirkland home purchase?
- It is your good‑faith deposit held by escrow under the Purchase and Sale Agreement and applied to your price and closing costs at closing.
How fast do I need to deliver my deposit in Kirkland?
- Your contract sets the deadline; in competitive situations, sellers often expect escrow to receive funds within 24 to 72 hours of mutual acceptance.
Can I get my earnest money back if I cancel after inspection?
- Generally yes if you terminate in writing within the inspection period as your contract allows; follow the exact steps and deadlines in your agreement.
Is my earnest money refundable if my loan is denied?
- If you have a valid financing contingency and you terminate on time under that contingency, the deposit is usually refundable.
Can the seller keep my deposit if they back out of the sale?
- No, a seller cannot simply keep your deposit if they breach; escrow typically requires a release or order, and the buyer may have remedies under the contract.
Should I wire earnest money or bring a check?
- Wiring is common for speed, but always verify wire instructions by phone with the escrow company using a trusted number to avoid fraud.
