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Earnest Money Isn't a Fee (It's YOUR Money)

Buyer

October 16, 2026•2 min read

Earnest Money Isn't a Fee (It's YOUR Money)

What Happens to Your Earnest Money?1

Why Buyers Should Pay Attention2

Buyer's Guide1

Watch: Earnest Money Isn't a Fee (It's YOUR Money)2

Bottom Line3

Buying a home comes with plenty of new terms, and earnest money is one that often causes confusion.

Here’s the simple truth: earnest money isn't a fee. It's your money.

Earnest money is a deposit you make to show the seller you're serious about purchasing the home. The amount can vary depending on the transaction and local practices.

What Happens to Your Earnest Money?

If the purchase moves forward, your earnest money is generally credited toward your closing costs or down payment. You aren't simply handing that money over to the seller.

Think of it as money that's already working toward your home purchase.

However, your contract matters. If the transaction doesn't close, whether you receive your earnest money back can depend on the reason for termination and the specific terms and contingencies in your agreement.

Why Buyers Should Pay Attention

Before making an earnest money deposit, understand:

How much you're putting down
Where the money will be held
What happens if the contract is terminated
Which contingencies protect your deposit
How the deposit will be applied at closing

Don't think of earnest money as another expense. Think of it as part of your homebuying funds—with contract terms determining what happens to it.

If you're navigating today's changing market, you may also want to read Mortgage Rate Whiplash: Speed Bump, Not a Wall and Homebuyer Plan for Gen Z & Millennials for more practical homebuying strategies.

The goal isn't just to buy a house. It's to understand where your money goes and make informed decisions every step of the way.

Buyer's Guide

Watch: Earnest Money Isn't a Fee (It's YOUR Money)

Bottom Line

Earnest money isn't simply a fee you pay to buy a home. It's your money being put toward the transaction. Know the contract, understand your contingencies, and make sure you know exactly what happens to your deposit before you sign.

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Theresa Mayer

Passionate about simplifying personal finance and real estate topics, helping first-time homebuyers make confident decisions on their journey to homeownership.

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★ ★ ★ ★ ★

Theresa is an exceptional real estate agent who truly made us feel like family throughout the entire process. My wife and I were relocating from Arizona to Tennessee, and she made what could have been a stressful experience feel smooth and manageable, easing so many of our concerns along the way. She consistently went above and beyond—touring homes on our behalf, providing detailed video walkthroughs, and helping us confidently find our dream home from out of state. Her dedication and communication are truly top-notch. Even after the purchase, she continues to check in to make sure we’re happy and settled. We couldn’t have asked for a better experience!

Megan & Crispin P.

★ ★ ★ ★ ★

I highly recommend Theresa Mayer as a professional and detail-oriented agent. Throughout our work together, she consistently demonstrated exceptional knowledge, clear communication, and an unwavering commitment to delivering top-tier service. Every step of the process was handled with precision, transparency, and a genuine focus on my best interests. Theresa is the kind of professional you want on your side—proactive, responsive, and highly organized. Whether navigating complex negotiations or managing routine tasks, she always ensured nothing was overlooked and is extremely kind. If you're looking for someone who combines industry expertise with integrity and a strong work ethic, Theresa is the ideal choice. I would not hesitate to work with her again or to recommend her to others.

Laura R.

★ ★ ★ ★ ★

What do I appreciate about Theresa Mayer as my agent, EVERYTHING! She is organized, attention to detail, and hears what I am looking for in a property. She is reachable when there is a question during the home buying process, and she is available to promptly show a home of interest. It is obvious that Theresa is working for her clients and wants to make sure the process is as smooth as possible. I would highly recommend Theresa Mayer as an agent!

Lynn A.

★ ★ ★ ★ ★

I highly recommend Theresa Mayer for her exceptional attentiveness, reliability and deep market knowledge. She is a trustworthy partner in navigating the real estate journey with confidence. Theresa really does sell sunshine!

Tom B.

★ ★ ★ ★ ★

Theresa has been an absolute joy to work with! She is a fantastic listener, always taking the time to understand our needs and concerns. Her ability to solve problems and address issues promptly was truly impressive. Theresa’s friendly and professional demeanor made the entire process smooth and stress-free. I highly recommend her to anyone looking for a dedicated and caring realtor!

Lora T.

★ ★ ★ ★ ★

Theresa works tirelessly to make sure her clients receive the best outcome. Thank you Theresa.

Mike A.

★ ★ ★ ★ ★

Theresa is one hard-working, honest and super intelligent Realtor!

Kali G, Realtor