How Much Earnest Money Should I Put Down?

So, you’ve found the one. No, not a soulmate — we’re talking about that dream home in Kansas City with the perfect porch swing and just the right number of bathrooms. Before you pop the champagne, it’s time to talk about earnest money — the often misunderstood, but totally essential, part of the home buying process. So, let’s answer your burning question, “How much earnest money should I put down?”

First Off … What Is Earnest Money?

Think of earnest money like a security deposit for your offer. It tells the seller, “Hey, I’m serious about this — I’m not just window shopping.” It shows commitment and keeps your offer strong in a competitive Kansas City market.

Once your offer is accepted, this earnest money is typically held in an escrow account and later applied toward your closing costs or down payment. If all goes well, you get credit for it. If you back out for a reason not protected in your contract, well… the seller may keep it. (Cue dramatic music.)

How Much Earnest Money Should You Put Down?

In Kansas City, the typical earnest money amount falls somewhere between 1% to 2% of the home’s purchase price. Here’s what that looks like in real numbers:

Of course, this isn’t a hard rule. In hotter markets or multiple-offer situations, buyers sometimes go higher to stand out. In slower markets, you might get away with less. It all depends on the property, the competition, and your negotiation strategy — which is where your real estate agent (hi, that’s us!) comes in.

What Happens to the Money?

Once your offer is accepted, the earnest money goes into an escrow account (often held by a title company). If the deal closes, the money is applied to your down payment or closing costs. If the deal falls through due to reasons protected in your contract — like a failed inspection or financing issues — you can usually get your money back.

But if you simply change your mind and ghost the deal without legal cause? That money likely stays with the seller. Ouch.

How to Decide What’s Right for You

When thinking about how much earnest money to offer, consider:

• The local market – In Kansas City, certain neighborhoods (like Brookside or parts of the Northland) can be especially competitive.
• Your comfort level – How much are you comfortable putting at risk (even if that risk is small)?
• Your financing strategy – You’ll need those funds available quickly, so make sure they’re not tied up in your cousin’s crypto startup.

Pro Tip: Bigger Isn’t Always Better

Yes, a larger earnest deposit can strengthen your offer — but it’s not a substitute for solid financing, smart contingencies, and working with a savvy local agent (again, that’s us). Let’s talk strategy before you throw down $10,000 just to look extra serious.

Ready to Make a Move?

Whether you’re buying your first home or your fifth, we’re here to guide you through every step — earnest money questions included. Let’s make sure your offer is not only competitive, but also protects your investment.

Reach out to us today and let’s find you a Kansas City home worth putting your money on.