Earnest Money in Kentfield: A Simple Buyer Guide

Buying in Kentfield moves fast, and so do decisions about earnest money. If you are wondering how much to put down, when it is due, and how to keep it safe, you are not alone. In a competitive Marin market, your deposit is one of the clearest signals to a seller that you are serious.

This guide explains what an earnest money deposit is, typical amounts in Kentfield, how escrow handles your funds in California, and how to balance a strong offer with smart risk management. You will also get simple examples to help you budget and a checklist to protect your deposit. Let’s dive in.

Earnest money basics

An earnest money deposit is a good‑faith sum you provide after a seller accepts your offer. In California, your purchase agreement sets the amount, where the funds go, and what happens if the sale does not close. Escrow or a broker trust account holds the money until closing or cancellation.

Practically, the deposit:

• Shows the seller you are committed.
• Gives the seller a measure of protection if a buyer defaults without a contractual reason.
• Becomes a credit toward your down payment and closing costs when you close.

If you cancel within a valid contingency period, you typically recover your deposit under the contract. If you remove contingencies and later cancel without a contract right, you risk losing some or all of the deposit based on the agreement’s remedies.

Typical amounts in Kentfield

There is no fixed rule, but patterns are clear in Marin’s higher‑priced, competitive market:

• Conservative or less‑competitive situations: about 1% to 2% of the purchase price.
• Competitive offers: about 2% to 5%.
• Multiple‑offer, high‑demand cases: sometimes 5% or more, which raises buyer risk.

Some buyers use a fixed dollar amount (for example, $10,000 to $50,000) instead of a percentage, especially in specific price tiers. All‑cash buyers may structure deposits differently because they do not have a loan contingency.

Here are simple examples to translate percentages into dollars:

• $1,200,000 list price: 1% = $12,000; 2% = $24,000; 3% = $36,000.
• $1,500,000 list price: 1% = $15,000; 2% = $30,000; 3% = $45,000; 5% = $75,000.
• $2,000,000 list price: 1% = $20,000; 2% = $40,000; 3% = $60,000.

Expectations can shift with seasonality, property type, and inventory. Your agent will match the deposit level to the home, the seller’s goals, and current competition.

How escrow handles deposits

In California, your purchase agreement names who will hold the deposit. In Marin, an independent escrow or title company commonly holds funds in a trust account as a neutral third party.

• Timing: Standard contracts often require you to deliver the deposit within a short window after acceptance, commonly 2 to 3 business days. In some competitive cases, buyers send funds sooner to show commitment.
• Form of payment: Cashier’s check, personal check that must clear, or wire transfer are typical. High‑value deposits are often wired or certified.
• Tracking: Escrow records the deposit in your file and follows written instructions for any release.
• At closing: The deposit is credited to your funds due. If the sale cancels under a valid contingency, escrow returns your funds per the contract.

Failure to deliver your deposit on time can be a breach of the contract, so put the deadline on your calendar the moment your offer is accepted.

Contingencies and risk

Contingencies protect you by allowing cancellation for specific reasons within set timelines. Common protections include:

• Inspection: Time to inspect the home and review reports.
• Loan: Time to secure full loan approval.
• Appraisal: Time to confirm value relative to price.
• Title: Time to resolve title defects.

How this affects your deposit:

• If you cancel properly within a contingency period, you typically get the deposit back per the contract.
• Once you remove contingencies, your deposit is more exposed if you later cancel.
• Some deals include additional non‑refundable sums or staged increases after certain milestones. These terms raise seller confidence but increase your risk, so review them carefully.

If there is a dispute about the deposit, escrow holds the funds until there is mutual agreement or a decision through the contract’s dispute process.

Practical ways to manage risk:

• Keep contingency periods realistic and coordinated with your lender and inspectors.
• Use staged deposits, such as a smaller initial amount with a higher second deposit after loan approval.
• Make sure the contract clearly states when funds become refundable versus non‑refundable.

Offer strategies in Kentfield

Your earnest money works alongside other key terms. A strong deposit can help, but it is only one part of a complete offer. Consider how these elements fit together:

• Price and proof of funds: Pair a compelling price with a lender preapproval and bank statements.
• Earnest money amount: In competitive Kentfield situations, 2% to 5% is common. Match it with sensible contingency timelines.
• Inspection window: Shorten, but avoid a full waiver unless you have already reviewed disclosures and are fully comfortable.
• Appraisal approach: If you are financing, some buyers use appraisal‑gap language rather than a full waiver.
• Closing date: Align with the seller’s timeline when possible.

Balanced examples you can discuss with your agent:

• Offer A: 3% deposit, 7 to 10 day inspection, standard loan appraisal timeline, detailed preapproval letter.
• Offer B: 2% initial deposit plus an additional 2% after loan approval, short inspection window, targeted appraisal‑gap language.

Both examples aim to show commitment while guarding your deposit until the key milestones are reached.

Budgeting and logistics

Plan your deposit as part of your total cash picture. Your deposit is not extra money. It becomes part of what you owe at closing.

A simple budgeting frame for Kentfield buyers:

• Deposit: Often 2% to 5% of price in competitive cases.
• Down payment: As required by your loan type or cash plan.
• Closing costs: Escrow, title, lending, and prepaid items.
• Move‑in and repairs: Reserve a cushion for early improvements.

Sample numbers:

• At $1,200,000, a 3% deposit is $36,000.
• At $2,000,000, a 2% deposit is $40,000.

Payment steps to expect:

1. Your offer is accepted and escrow is opened.
2. You receive wiring or delivery instructions from the named escrow holder.
3. You send funds within the deadline stated in the contract.
4. Escrow confirms receipt and issues a deposit receipt.

Protecting your deposit

Wire fraud targets real estate transactions, so slow down and verify before sending money.

• Confirm escrow details independently. Call the escrow company using a phone number you find from a trusted source, not from an unexpected email.
• Verify wiring instructions by voice with the escrow officer.
• Do a small test call with your bank to confirm account and routing details.
• Never approve last‑minute changes to wiring instructions without direct phone confirmation.
• Keep proof of your transfer and request escrow’s deposit receipt.

Next steps

A right‑sized deposit can make your offer stand out in Kentfield without exposing you to unnecessary risk. The key is matching your earnest money to the property, the competition, and your comfort with contingencies and timelines. With clear planning, fast logistics, and strong coordination with your lender and escrow, you can move with confidence.

If you would like tailored guidance for a specific Kentfield home or want to model deposit options side by side, reach out to Kristen Palmer for calm, local insight and a clear plan.

FAQs

What is earnest money in a California home purchase?

• An earnest money deposit is a good‑faith sum you place after your offer is accepted, held in escrow or a broker trust account, and credited to you at closing.

How much earnest money is typical for Kentfield?

• In Marin’s competitive market, many buyers offer about 2% to 5% of price, with 1% to 2% more common in less competitive situations.

When do I have to deposit earnest money in Kentfield?

• Standard contracts often set a 2 to 3 business day window after acceptance, though some buyers wire funds sooner in very competitive situations.

Can I get my earnest money back if the deal falls through?

• If you cancel under a valid contingency within the deadline, you typically recover your deposit according to the purchase agreement.

What forms of payment are accepted for the deposit?

• Common forms include wire transfers, cashier’s checks, and personal checks that must clear; follow the escrow holder’s instructions.

How do contingencies affect my deposit risk?

• Your deposit is better protected while contingencies remain; once you remove them, canceling can put the deposit at risk depending on contract terms.

What strategies help my offer without risking too much?

• Consider a 2% to 5% deposit with shorter but realistic contingencies, strong preapproval, and staged deposits tied to milestones like loan approval.

How do I avoid wire fraud when sending my deposit?

• Verify wiring instructions by phone using a trusted number, ignore unexpected changes by email, and keep records of your transfer and escrow receipt.