Wondering how much earnest money you need to compete in Bend without taking on too much risk? You are not alone. When you write an offer in Oregon, the earnest money you choose sends a clear signal to the seller about your commitment and financial readiness. In this guide, you will learn how earnest money works in Oregon, what is typical in Bend, who holds the funds, which contingencies protect you, and how to keep your deposit safe through closing. Let’s dive in.
Earnest money basics
Earnest money is your good‑faith deposit that accompanies your offer to buy a home. It shows the seller you are serious. If the sale closes, the deposit is applied to your down payment or closing costs.
The purchase agreement controls what happens to the deposit. It sets the conditions for when you can get it back and when the seller may keep it if you default. In Oregon, client funds must be handled in trust or escrow accounts with proper recordkeeping, and you should receive a written receipt after you deposit the funds.
Typical amounts in Bend
There is no single “right” number. Amounts depend on market conditions, price point, and your offer terms. Common ranges include:
- In calmer markets: $1,000 to $3,000 or about 1% of the purchase price.
- In competitive situations: 2% to 3% or flat amounts like $5,000 to $10,000.
- For higher‑priced or very competitive offers: sometimes 3% to 5% or more.
Bend has cycled between multiple‑offer periods and quieter seasons. When inventory is tight, sellers often expect larger deposits. In slower or winter months, you may have room to offer less. Higher‑priced homes usually come with larger dollar deposits even when the percentage is similar. New construction, investor purchases, or cash offers can also influence expectations.
A smart move is to ask your agent for recent local examples of accepted offers at your price point. If you plan to limit contingencies, a stronger earnest deposit can help your offer stand out, as long as the risk fits your comfort level.
Who holds your deposit and when
Your purchase agreement will name the escrow or title company, or sometimes a broker’s trust account, as the holder of your deposit. The contract will also set a deadline to deliver your funds. A common window is 24 to 72 hours after mutual acceptance, but your agreement controls the exact timeline.
Be ready to deposit quickly and get a written receipt from the escrow holder. At closing, your earnest money is credited to your side of the settlement. If the deal properly terminates under a contingency, the escrow holder will follow the contract instructions for releasing funds.
Contingencies that protect your deposit
Contingencies give you an exit path with a refund of your earnest money if you act within the contract deadlines and provide proper written notice. Common protections include:
- Inspection contingency
- Financing or mortgage contingency
- Appraisal contingency
- Title review contingency
- Review windows for items like HOA documents, septic systems, or feasibility studies
Track your timelines closely. If you need more time, request an extension in writing before your deadline expires. If you terminate within the contingency window and follow the notice rules, your deposit is typically refundable.
When your deposit is at risk
Your earnest money can be at risk if you default on the contract after contingencies are satisfied or waived, or if you terminate outside your contingency periods without proper notice. Contract language matters. Watch for sections titled remedies, liquidated damages, dispute resolution, and contingency periods.
Here are common scenarios:
- You complete your inspection and terminate within the inspection window due to a major issue. Your deposit is typically returned.
- You waive the inspection contingency, then later back out for a reason not covered by the contract. Your deposit is often at risk.
- Your financing falls through, but you had a valid financing contingency and met your lender and notice obligations. Your deposit is typically refundable.
If a dispute arises, many deposits are released through a mutual agreement between buyer and seller. If there is no agreement, the escrow holder may hold funds until a court or arbitrator provides direction, which can delay release. If you find yourself in a dispute, follow your contract’s steps and consider consulting a local real estate attorney.
Winter in Bend: smart strategies
Winter in Bend usually means fewer active buyers and sometimes more negotiating room. That can allow smaller deposits or more standard contingencies. Even so, well‑priced and desirable homes can still draw strong interest, so be ready to adjust your strategy.
Keep these winter factors in mind:
- Inspections may need to account for snow loads, ice dams, roof condition, HVAC performance, and potential moisture issues. Build time for any specialized inspections.
- Holiday schedules can affect lender and escrow processing. Set contingency and closing timelines that respect reduced business days.
- If competition is light, consider a smaller earnest deposit along with standard protections. If you are going above list price or trimming contingencies, a higher deposit can help your offer stand out.
Offer timeline: what to expect
Use this simple roadmap to plan your steps and protect your deposit:
Before you offer
- Discuss realistic earnest money ranges with your agent using recent Bend examples.
- Have proof of funds and lender preapproval ready. Sellers often ask for verification.
- Decide how much you are comfortable risking if you choose to waive or shorten contingencies.
After acceptance
- Deposit your earnest money with the named escrow or title company by the contract deadline, often within 24 to 72 hours.
- Get a written receipt and confirm how the funds will be applied at closing.
During contingencies
- Calendar all deadlines: inspection, appraisal, loan milestones, title review, and any HOA or feasibility periods.
- Send written notices in time if you plan to terminate, request repairs, or seek extensions. This protects your right to a refund.
At closing
- Your earnest money is applied to your closing costs or down payment.
If a dispute arises
- Follow the contract’s dispute resolution steps and communicate in writing.
- Coordinate with the escrow holder and consider advice from a real estate attorney familiar with Oregon contracts.
Risk management for Bend buyers
A thoughtful plan can keep your offer competitive while protecting your deposit:
- Calibrate your deposit to the market. In quieter weeks, a modest deposit may be enough. In multiple‑offer situations, consider a higher amount if it aligns with your risk tolerance.
- Keep contingency periods realistic. Too‑short deadlines can backfire. Ask for extensions in writing before a deadline passes.
- Name the escrow holder clearly in your offer and confirm deposit delivery details. Wire instructions should come directly from the escrow or title company.
- If you reduce contingencies, consider balancing the risk with a stronger deposit or an escalation clause. Make sure you understand what you might forfeit if the deal fails after contingencies are waived.
- Document everything. Deposit promptly, collect receipts, and keep copies of all notices and addenda.
How to choose your number
Picking your earnest money amount is part strategy and part comfort level. Consider these drivers:
- Market temperature. Ask your agent about current competition at your price point.
- Offer structure. Fewer contingencies often call for a stronger deposit.
- Property type and condition. New builds, bank‑owned, or repair‑heavy homes can change expectations.
- Your liquidity. Ensure you can fund the deposit quickly and still meet closing costs.
Most buyers find a middle ground that shows commitment without taking on unnecessary risk. Your agent’s recent experience with accepted offers in Bend is your best guide.
Final thoughts
Your earnest money is more than a number. It is a signal of seriousness and a key piece of your negotiation. In Bend, expectations shift with the season and the specific property, so lean on current local examples, keep clean timelines, and use contingencies wisely. With the right plan, you can submit a strong offer and protect your deposit through closing.
If you want a local advisor to help you pick the right strategy for your goals, schedule a free consultation with Leah Bullen. You will get practical guidance on amounts, timelines, and protections that fit Bend’s current market.
FAQs
How does earnest money work in Oregon home purchases?
- It is a good‑faith deposit held by escrow, applied to your costs at closing. Contract terms control when it is refundable or forfeited.
How much earnest money is typical in Bend right now?
- Amounts vary with competition, price, and contingencies. Common ranges are $1,000 to $10,000 or about 1% to 3% in many markets, with higher amounts in more competitive situations.
Who holds my earnest money and how fast must I pay?
- Your contract names the escrow or title company, or a broker trust account. A common deadline is 24 to 72 hours after acceptance, but your agreement sets the exact timing.
Which contingencies protect my deposit?
- Standard protections include inspection, financing, appraisal, and title review. You must give written notice within the deadlines to preserve a refund.
When could a seller keep my deposit?
- If you default after contingencies are satisfied or waived, or you terminate outside your contingency windows without proper notice, the seller may seek to retain the deposit per the contract.
How long does a refund take if I cancel correctly?
- Often a few business days after the seller and escrow process the release, though timing depends on escrow procedures and whether any dispute exists.