What happens to your deposit after the seller accepts your offer? If you are buying in Goodyear, understanding earnest money helps you write a confident offer and avoid costly mistakes. You want clarity on how much to put down, when it is due, and when you can get it back if things change. This guide breaks down the essentials so you can protect your deposit and move forward with less stress. Let’s dive in.
Earnest money basics
Earnest money is a good‑faith deposit that shows a seller you are serious about buying the home. In Arizona, it is placed with a neutral escrow or title company and credited to you at closing. It is not an extra fee. It becomes part of your down payment and closing funds when you close.
Whether the deposit is refundable depends on the purchase contract and the contingencies you include. If you cancel within the timelines set by your contingencies, you can usually receive your deposit back. If you remove or miss contingencies and then do not close, your deposit can be at risk.
How it works in Goodyear
Who holds the deposit
In Goodyear and across Maricopa County, the purchase contract typically names a title or escrow company to hold the funds in a trust account. Larger national title brands and local escrow firms are common. The escrow holder provides a receipt and follows the contract to release funds at closing or upon cancellation.
Typical deposit amounts
In Phoenix‑area practice, buyers commonly offer about 1% to 3% of the purchase price as earnest money. Flat amounts between $1,000 and $10,000 are also common, depending on price point and market conditions. In very competitive multiple‑offer situations, some buyers increase the deposit to stand out. In softer markets, smaller deposits may be acceptable.
When it is due and how to pay
Your contract states exactly when the deposit is due. Standard practice often requires you to deliver the funds to escrow within 24 to 72 hours after the offer is accepted, or by a specific deadline in the contract. Missing that deadline can put you in default, so set reminders and act fast.
Accepted methods include wire transfer, cashier’s check, certified check, or sometimes a personal check if the escrow company allows it. Wires and cashier’s checks are fastest. Always get a written receipt from the escrow holder as soon as you deliver funds.
When you can get it back
Inspection contingency
Most Arizona contracts include an inspection period. During that window, you can inspect the home, request repairs, or cancel. If you cancel within the inspection period as the contract allows, your earnest money is typically refundable. Keep copies of your inspection reports and submit any notices in writing before the deadline.
Financing and appraisal
If you include a financing contingency and you cannot obtain the loan on the terms described in the contract, you may cancel within the stated timeframe and receive a refund of your deposit. Many buyers also rely on an appraisal contingency. If the appraisal comes in materially below the price and you cannot reach a new agreement with the seller, you can usually cancel and have the deposit returned, as long as you follow the contract procedures.
Title and HOA review
You will be given time to review the preliminary title report and, when applicable, HOA documents. If a title or HOA issue is not resolved and the contract gives you the right to cancel, you can do so within the deadline and request your deposit back. Keep all communications and notices in writing.
When your deposit is at risk
After contingencies expire
Once your contingencies are removed or expire, failing to close can put your earnest money at risk. Sellers may have the right to keep the deposit if the contract treats it as liquidated damages for a buyer default. Read every date and term carefully before you remove contingencies.
Liquidated damages and disputes
Arizona purchase contracts often outline remedies if the buyer defaults, which can include allowing the seller to retain the earnest money up to an agreed amount. If a dispute arises, the escrow holder typically keeps the funds until the parties reach a written agreement or follow the contract’s dispute resolution steps.
How disputes are resolved
If buyer and seller disagree about who should receive the earnest money, the contract may call for mediation, arbitration, or court. Escrow and title companies generally will not release funds without mutual instructions or a formal decision. If you believe your cancellation is valid and the other party disagrees, gather your documents and follow the dispute clause in your contract.
Smart strategies for Goodyear buyers
Before you write the offer
- Ask your agent about typical earnest money in your price range and neighborhood.
- Choose an amount that shows commitment without overexposing you to risk.
- Decide which contingencies you need and set realistic timelines for each.
In the contract
- Specify the exact deposit amount and name the escrow or title company.
- Set a clear delivery deadline and payment method.
- Include inspection, financing, and appraisal contingencies with dates that fit your needs.
- Discuss any liquidated damages language so you understand the risk.
After acceptance
- Deliver funds on time and obtain a written receipt from escrow.
- Calendar every contingency deadline and share them with your lender and agent.
- If you cancel under a contingency, provide written notice and supporting documents, such as inspection reports, lender denial letters, or the appraisal.
To strengthen your offer
- Consider a larger deposit, shorter contingency periods, or both to signal confidence.
- Only tighten timelines you can meet. Coordinate with your lender and inspector first.
- Avoid nonrefundable deposits unless you fully understand the risk and are highly certain you will close.
Local tips for Goodyear escrow
- Work with a reputable title or escrow company. Ask how they accept funds, when wires post, and how quickly they issue receipts.
- Many Goodyear neighborhoods have HOAs. Review those documents early so you can raise any concerns within the deadline.
- Typical Phoenix‑area escrows run about 30 to 45 days, though some close faster. Your deposit stays in escrow until closing or an earlier release allowed by the contract.
Red flags to avoid
- Vague or missing deadlines for delivering earnest money.
- An unnamed escrow holder or delays in providing a receipt.
- Pressure to make the deposit nonrefundable before you finish due diligence.
- Verbal promises about refundability that do not appear in the contract. Always rely on written terms.
A simple timeline example
- Day 0: Offer accepted. Your delivery deadline for earnest money starts.
- Day 1–3: Deliver funds by wire or cashier’s check and get a receipt from escrow.
- Day 1–10: Inspection period. Complete inspections and either negotiate repairs or cancel per the contract.
- By financing and appraisal deadlines: Confirm loan approval and appraisal. If issues arise, act within the contingency windows.
- Closing day: Funds are applied to your down payment and closing costs. Deed records with Maricopa County after closing.
Buying in Goodyear should feel exciting, not stressful. If you want step‑by‑step support on earnest money strategy, deadlines, and negotiations, reach out to MORE Homes. We will walk you through each decision so your deposit is protected and your offer stands out.
FAQs
How much earnest money do Goodyear buyers usually put down?
- Many buyers offer about 1% to 3% of the purchase price, or a flat $1,000 to $10,000 depending on price point and competition.
Where do I send my earnest money in Goodyear?
- Send it to the escrow or title company named in your purchase contract. Confirm wiring instructions or check requirements and get a written receipt.
Is earnest money refundable if my loan is denied?
- If you have a valid financing contingency and follow the contract steps and timelines, the deposit is typically refundable when the loan falls through.
What if the seller and I disagree about the deposit?
- Escrow usually holds funds until there is a mutual release or a resolution under the contract’s dispute clause, such as mediation, arbitration, or court.
Do I have to make my deposit nonrefundable to win in a hot market?
- Not always. Larger deposits or shorter timelines can strengthen an offer without waiving protections. Only consider nonrefundable terms if you fully understand the risk and are confident you can close.
