Are you wondering how much earnest money you should offer on a Bryan home, and what happens to it if a deal falls through? You are not alone. Earnest money can feel confusing, especially if you are new to Texas contracts or relocating to the Brazos Valley. In this guide, you will learn what earnest money is, how it works in Texas, typical local amounts in Bryan–College Station, key deadlines, and how to protect your deposit. Let’s dive in.
What earnest money means in Texas
Earnest money is a deposit you give when your offer is accepted. It shows good faith and helps bind you to the contract. A neutral escrow holder, usually a title company, holds the funds until closing or cancellation. If you close, the money is credited to your down payment or closing costs.
Texas does not set a required earnest money amount. The amount, who holds it, and when it is due are all negotiated in your contract, most often the TREC One to Four Family Residential Contract. You can review the state’s forms on the TREC residential contract forms page.
Typical amounts in Bryan–College Station
In many Brazos County offers, you will see earnest money in the range of 1,000 to 5,000 dollars for moderately priced homes. In competitive situations, buyers often put up about 1 percent of the purchase price. For higher priced homes, deposits can be larger or fall in the 1 to 2 percent range.
Amounts vary based on market activity, your comfort level, and seller expectations. Too small can make your offer look weak, while too large ties up cash and increases risk if you default. Many local buyers pair a meaningful earnest money amount with a solid pre-approval to show strength without overextending.
Local examples
- 250,000 dollar home: you might offer 2,500 dollars (1 percent) or 1,500 dollars if the seller agrees.
- 300,000 dollar home with multiple offers: 3,000 dollars (1 percent) or a flat 5,000 dollars to stand out.
- New construction or investor sale: 7,500 to 10,000 dollars if you need a stronger signal.
Option fee vs. earnest money
In Texas, the option fee and earnest money are separate. The option fee buys you the right to terminate during the option period for any reason. It is usually modest and is often nonrefundable once paid, unless the parties agree otherwise.
Earnest money may be refundable if you follow the contract terms for a valid termination. In the Bryan–College Station area, many buyers negotiate short option periods of about 5 to 10 days with a reasonable option fee. For general contract guidance, see Texas REALTORS consumer resources.
How and when to deliver
Your contract will name the escrow holder, often a local title company, and set a delivery deadline. A common practice is to deliver earnest money within 1 to 3 business days after the effective date, but your contract may set a specific date.
Plan ahead so funds are accessible and can be deposited quickly. Confirm delivery instructions with the title company and keep your receipt. If you do not deliver on time, the seller may have remedies under the contract.
Key deadlines that affect your deposit
- Effective date: starts most timelines in your contract.
- Option period: inspect and decide. If you terminate within this window, you usually get earnest money back. The option fee is typically nonrefundable.
- Financing and appraisal deadlines: follow notice rules if your lender denies the loan or the appraisal comes in low under the contract terms.
For contract timing and forms, visit the Texas Real Estate Commission.
When you can get earnest money back
- You terminate during a valid option period. You must give written notice within the option period. The seller typically keeps the option fee.
- Your financing is denied and you terminate under the contract’s financing terms. You must show good faith efforts and give notice by the stated deadline.
- Appraisal shortfall. If your contract allows, you can terminate per the appraisal or financing terms. Refunds depend on timely and proper notice.
- The seller defaults. If the seller fails to perform, you can seek return of your earnest money. The contract explains your remedies.
When a seller may keep earnest money
If you walk away without a valid contractual reason, you may be in default. Many TREC contracts give the seller an option to keep earnest money as liquidated damages if that box is selected. If liquidated damages is not selected, the seller may pursue other remedies stated in the contract.
Title companies generally need a written release from both parties or a court order to disburse disputed funds. Clear, on-time notices help prevent disputes.
Buyer tips for Bryan–College Station
- Choose an amount that shows commitment without straining cash. Around 1 percent can help in competitive cases.
- Keep funds ready. You may need to deposit within 1 to 3 business days of the effective date.
- Protect your rights. Use written notices and meet option, financing, and appraisal deadlines.
- Pair strength with protection. A meaningful earnest money deposit plus a clear option period and strong pre-approval creates a balanced offer.
- Verify escrow details. Confirm the named title company and get a receipt for your deposit.
Seller tips in Brazos County
- View earnest money as a sign of seriousness, not a substitute for a strong lender and clean contract terms.
- Confirm the escrow agent and the deposit quickly. Ask for proof of delivery.
- If the buyer defaults, review contract remedies, including liquidated damages if selected. Consult counsel before agreeing to disburse funds.
How this plays out locally
- First-time buyer in Bryan: on a 250,000 dollar home, offering 2,500 dollars in earnest money with a 7-day option period can balance protection and appeal.
- Multiple-offer home near major employers: a buyer at 300,000 dollars may choose a 5,000 dollar deposit and a shorter option period to compete.
- Investor purchase or new build: a higher flat amount, such as 7,500 to 10,000 dollars, can signal commitment if terms are otherwise similar.
Helpful resources
- Review the state’s contract forms and instructions on the TREC forms page.
- Explore consumer articles about earnest money and option periods from Texas REALTORS.
- Get broader contract insights at the National Association of REALTORS.
Ready for local guidance?
Whether you are buying your first home in Bryan or making a move across the Brazos Valley, you deserve clear advice and a strategy that fits your goals. If you want help choosing the right earnest money amount, planning timelines, or preparing a competitive offer, let’s talk. Connect with Laura Lea Smith to schedule a Free Consultation and Home Valuation.
FAQs
What is earnest money in Texas real estate?
- It is a buyer’s deposit held in escrow to show good faith, which is credited to closing if the deal closes and handled per the contract if it does not.
How much earnest money is typical in Bryan–College Station?
- Many offers use 1,000 to 5,000 dollars, while competitive listings often see about 1 percent of the purchase price.
Is earnest money refundable if I end the deal during the option period?
- Yes, if you give written notice within the option period per the contract; the option fee is usually nonrefundable.
What is the difference between option fee and earnest money?
- The option fee buys your right to terminate during the option period and is typically nonrefundable, while earnest money may be refundable based on contract performance and notices.
When is earnest money due after my offer is accepted in Texas?
- Your contract sets the deadline, and many local deals call for delivery within 1 to 3 business days of the effective date.
Who holds earnest money in Brazos County transactions?
- A title company or broker escrow named in the contract holds the funds and releases them based on the contract or mutual instructions.
What happens to earnest money if the appraisal comes in low?
- Your options depend on the contract; you may renegotiate, bring extra funds, or terminate if allowed, with refunds tied to proper and timely notice.
Can new construction in Bryan–College Station require higher earnest money?
- It often does, since builders and competitive investor sales may favor larger deposits to signal commitment.
How can I make my offer stronger without risking my earnest money?
- Combine a meaningful deposit with a strong pre-approval and a clear, workable option period, then follow all notice and timing rules in the contract.
