Earnest Money In Polaris: How Much And When

Thinking about making an offer on a home around Polaris and wondering how much earnest money to put down and when to pay it? You are not alone. The deposit feels big because it represents your commitment and sits on the line until closing. In this guide, you will learn typical amounts for Polaris and North Columbus, when the money is due, how refund rules work, and smart ways to structure your offer so you stay competitive without taking on unnecessary risk. Let’s dive in.

Earnest money basics

Earnest money is a deposit you provide with your offer to show good faith. If the sale closes, the deposit is applied to your purchase price, down payment, or closing costs. If the deal does not close, what happens to the deposit depends on your contract and any contingencies.

Sellers look for a reasonable deposit because it signals that you are serious. The contract will also name where the funds are held, usually in an escrow or trust account with a title company, closing attorney, or sometimes a brokerage.

How much in Polaris

In many U.S. markets, a typical range is 1% to 3% of the purchase price. Around Polaris and North Columbus, you will also see flat-dollar deposits, commonly $1,000 to $5,000 on lower-priced homes or early offers. In competitive situations, buyers sometimes go higher, even 5% or more, to stand out. Your final number should match your risk comfort and the seller’s expectations.

Quick examples

• 1% of $350,000 is $3,500.
• A $3,000 deposit on a $300,000 home equals 1% of the price.
• 3% of $600,000 is $18,000.

For many Polaris buyers, 1% to 2% is a reasonable starting point. If you expect multiple offers or a fast-moving listing, consider increasing the deposit or tightening contingency timelines.

When to go higher

• You are competing with multiple offers and want a stronger signal of commitment.
• The seller prefers clean terms and a larger deposit may help your offer stand out.
• You plan to shorten contingency windows and want the deposit to back up your promise to move quickly.

When earnest money is due

Your purchase agreement sets the exact timing, but there are common patterns.

Typical timeline

• With the offer or right after acceptance. Many buyers deliver the deposit or proof of funds when the offer is accepted. Contracts often require delivery within 1 to 3 business days, sometimes up to 5.
• Tiered deposits. Some agreements use a small initial deposit with the offer and a larger second deposit within a few days of acceptance.

Plan ahead so you can meet deadlines. Have wire instructions or a certified check ready, and confirm the escrow holder named in the contract.

Where your deposit is held

In Ohio, deposits are commonly held in a title company or attorney escrow/trust account. You should receive a written receipt noting the amount, the date received, and the escrow holder. Keep that documentation with your contract records.

Always verify wire instructions using known contact details from your agent or the title company to reduce the risk of wire fraud. Do not send funds without confirming the instructions.

When your deposit is refundable

Contingencies are your safety net. If you follow the contract and cancel within the allowed period, your earnest money is usually refundable.

Contingencies that protect you

• Inspection contingency
• Financing or mortgage contingency
• Appraisal contingency
• Title contingency
• Sale-of-buyer’s-home contingency

When a contingency applies and you terminate within the deadline per the contract terms, you can generally expect a refund of your deposit.

Times you could forfeit

• You remove contingencies and later back out without a covered reason.
• You miss a contingency deadline and do not properly terminate.
• You default on the contract after contingencies are removed.

After contingencies are satisfied or removed, the deposit is typically non-refundable unless the seller breaches the agreement.

Handling disputes

If there is a disagreement over the deposit, the escrow holder usually keeps funds in place until both parties agree in writing or a court order directs disbursement. Contract terms may call for mediation, arbitration, or litigation. Keep careful records of notices, timelines, and communications.

Strategies to size and structure your deposit

There is no one-size number. Match your earnest money to your goals, the market, and your level of risk tolerance.

If you want to stay conservative

• Target about 1% or a modest flat amount.
• Keep inspection and financing contingencies.
• Use standard timelines you can meet without stress.

If you want to be competitive

• Consider 2% to 3% and tighten contingency windows.
• Offer a shorter inspection period, such as 7 to 10 days, while keeping the protection in place.
• Use a tiered deposit to show escalating commitment after acceptance.

If you want an aggressive offer

• Increase the deposit and consider waiving select contingencies only if you fully understand the risk.
• Some buyers make a portion of the deposit non-refundable after a date. This can strengthen your offer but raises your exposure. Make sure the language is clear in the contract.

Protect the funds

• Have the deposit held by a reputable title company or closing attorney.
• Get a written receipt and escrow instructions.
• Verify wire instructions through trusted contact methods.
• Follow the contract’s notice and termination steps exactly.

Realistic Polaris scenarios

• Moderate offer on a $350,000 home: $3,500 deposit, standard inspection and financing contingencies, 10-day inspection window.
• Strong offer in a bidding situation: $7,000 to $10,000 deposit with inspection and financing contingencies on 5 to 7-day timelines, or a smaller non-refundable portion after the inspection period ends.

Buyer checklist

Use this quick list to prepare, submit, and protect your earnest money in Polaris.

Before you write an offer

• Ask your agent about current deposit norms for similar homes.
• Decide how much risk you are comfortable taking on.
• Set realistic contingency windows for inspection, appraisal, and financing.

When you submit the offer

• Confirm the escrow holder in the contract.
• Prepare funds and delivery method. Request wire instructions early if needed.
• Get a written receipt once the deposit is received.

If an issue arises

• Follow contract notice and termination steps exactly and on time.
• Keep documentation, including inspection reports and lender notices.
• If a dispute emerges, speak with your agent and consider legal counsel.

Common pitfalls to avoid

• Sending funds before you verify wire instructions with known contacts.
• Offering a large deposit without contingency protection you truly understand.
• Missing a contingency deadline and losing refundable rights.
• Assuming a flat-dollar deposit always looks strong in a competitive situation. In some cases, a percentage-based deposit signals more commitment.

How a local advisor helps

You make better decisions when you see the full picture. A local agent can share what sellers around Polaris and Delaware County expect, how hot the submarket is, and which terms are making offers win. With a background in construction management, your advisor can also help you set a realistic inspection timeline and prepare for possible repair negotiations without risking your deposit.

When you are ready to make an offer, you can balance a strong deposit with contingency protection so you stay competitive and comfortable from offer to closing.

Ready to talk through your earnest money strategy for a Polaris home? Connect with Bryce G Smith to review your goals and craft a confident offer.

FAQs

How much earnest money is typical in Polaris?

• Most buyers put down 1% to 3% of the price, or $1,000 to $5,000 on lower-priced homes. Competitive listings may justify a higher amount.

When is earnest money due after an offer?

• Contracts often require delivery within 1 to 3 business days of acceptance, sometimes up to 5. Some deals use a small initial deposit and a larger second deposit.

Where is my earnest money held in Ohio?

• Usually in a title company or closing attorney escrow/trust account named in your contract. Get a written receipt.

When can I get my earnest money back?

• If you terminate under a valid contingency, such as inspection or financing, within the contract deadlines and follow the notice steps, the deposit is typically refundable.

Can I lose my earnest money if I back out?

• Yes, if you remove contingencies or miss deadlines and then cancel without a covered reason, you may forfeit the deposit per the contract.

Is non-refundable earnest money allowed in Ohio?

• Yes, if clearly agreed to in writing in the contract. It increases your risk, so understand the terms before committing.