Wondering how much earnest money you need for a Farmington home and when you have to pay it? You are not alone. This small but important piece of your offer can help you stand out and protect your budget. In this guide, you will learn typical deposit amounts in Farmington and the Hartford area, when the money is due, who holds it, and how to keep it safe with the right contingencies. Let’s dive in.
What earnest money is
Earnest money is a good‑faith deposit that shows a seller you are serious. The seller agrees to take the home off the market while you complete inspection, appraisal, financing, and title steps.
Your deposit is usually credited to you at closing. It goes toward your down payment or closing costs, not an extra fee.
Sellers watch the deposit amount and timing. A solid deposit signals commitment, but it does not replace careful contract terms and deadlines.
Typical amounts in Farmington
In many Connecticut deals, earnest money lands around 1% to 3% of the purchase price. In hotter, multiple‑offer situations, some buyers offer more, sometimes 3% to 5%, to strengthen the offer. Lower fixed amounts can appear on smaller purchases, but your price point and market competition should guide you.
Here are simple examples for common Hartford County price points:
| Price | 1% | 2% | 3% |
|---|---|---|---|
| $300,000 | $3,000 | $6,000 | $9,000 |
| $500,000 | $5,000 | $10,000 | $15,000 |
| $750,000 | $7,500 | $15,000 | $22,500 |
What drives your number in Farmington:
- Market temperature. If inventory is tight and multiple offers are common, higher deposits are more typical.
- Property type and price band. In‑demand or higher‑price homes may see larger deposits.
- Financing profile. All‑cash buyers often pair higher deposits with fewer contingencies. Financed buyers balance deposit size with needed protections.
Always confirm what is customary on recent accepted offers for similar homes in Farmington. Your signed purchase and sale agreement controls the final terms.
Timing and escrow in Connecticut
You usually deliver the deposit with the offer or within a short window after acceptance. Many contracts call for delivery within 24 to 72 hours or within a stated number of business days. The exact timing will be written in your purchase and sale agreement or an addendum.
Who holds your funds varies. In Connecticut, an attorney’s escrow account often holds the money. The listing broker’s or buyer’s broker’s trust account can also serve as escrow. All options must follow Connecticut escrow rules for client funds.
At closing, the deposit is credited to you. If you are entitled to a refund under a contingency, the escrow holder returns the funds per the contract and required written notices. Ask for a written receipt that shows the amount, date, escrow holder, and the escrow account details. Make checks payable to the named escrow holder, not to an individual.
Refunds, forfeits, and contingencies
Contingencies protect your deposit when used correctly. The most common are inspection, financing, appraisal, title, and sometimes sale‑of‑home. Deadlines and written notices are critical.
When your deposit is usually refundable:
- Inspection contingency. You withdraw or request remedies within the inspection window after finding issues the seller will not address.
- Financing contingency. You cannot secure loan approval by the set date and give timely written notice per the contract.
- Appraisal contingency. The appraisal is short of the price and you cannot bridge the gap. You cancel under the terms allowed.
- Title contingency. A title problem cannot be cleared as required.
When your deposit may be forfeited:
- You miss a contingency deadline or fail to give the required notice even if a problem exists.
- You walk away for reasons not covered by the contract after contingencies expire.
- You breach the agreement and the seller elects to keep the deposit as liquidated damages if the contract allows it.
Escrow releases often require a mutual written release. Without agreement, the escrow holder can keep funds in the account until the parties resolve the dispute through mediation, arbitration, or court, as the contract directs.
Offer checklist for Farmington buyers
Use this quick list before you submit your offer:
- Choose a competitive deposit amount based on recent Farmington comps and the current level of competition.
- Confirm who will hold escrow and how you will deliver funds.
- Set the deposit timing that you can meet, such as within 48 hours of acceptance.
- Lock in contingency windows with calendar dates for inspection, financing, appraisal, and title.
- Attach strong pre‑approval from your lender.
- Request a written escrow receipt after delivery.
Negotiation options that work here
- Larger deposit. Signals strength in multiple‑offer situations. Balance it with tight documentation and contingency protection.
- Shorter contingency periods. Attractive to sellers, but only choose windows you can actually meet with your inspector and lender.
- Strong non‑price terms. Faster closing or flexible possession can help you keep a reasonable deposit.
- Nonrefundable deposit. Sometimes requested on very competitive listings. Consider only with full understanding of the risk and with legal guidance.
Protect your deposit
- Track all deadlines on a shared calendar and set reminders.
- Send notices in writing and keep copies with timestamps.
- Confirm who holds escrow, the account type, and how funds will be released.
- Coordinate early with your lender and inspector so you meet your dates.
- Ask your agent or attorney to review contract language so your contingency steps are clear.
Ready to tailor an offer to today’s Farmington market and protect your deposit at every step? Reach out to the owner‑led team at The Connecticut Agency to Request a Free Home Consultation and get a custom deposit and contingency plan.
FAQs
How much earnest money should I offer in Farmington?
- Many buyers start in the 1% to 3% range, then adjust for price point and competition. Recent local accepted offers are the best guide.
When is my earnest money due in Connecticut deals?
- You typically deliver it with the offer or within 24 to 72 hours after acceptance. Your signed contract sets the exact deadline.
Who holds the earnest money in Farmington transactions?
- An attorney’s escrow account commonly holds funds in Connecticut. A broker’s trust account is also used. The contract must name the holder.
Will I lose my deposit if the inspection finds issues?
- Not if you act within the inspection window and provide the required written notice under the contract. Missing deadlines can put your deposit at risk.
Can a seller request a nonrefundable deposit in Hartford County?
- Yes, a seller can ask. Agree only if you understand the risk and have the right terms. Many buyers prefer refundable deposits with clear contingencies.
