Earnest Money in Hilliard: A Simple Buyer’s Guide

Buying in Hilliard and wondering how much earnest money you should put down with your offer? You are not alone. The deposit can feel confusing, especially if this is your first or second purchase in Central Ohio. In this guide, you will learn what earnest money is, typical Hilliard ranges, how it is handled in Ohio, and smart ways to protect your funds while making a strong offer. Let’s dive in.

What earnest money means for you

Earnest money is a good‑faith deposit you include with your offer to show the seller you are serious. It gives the seller some protection while you complete inspections, secure financing, and move toward closing. If the sale closes, your deposit is credited toward your down payment and closing costs.

In Ohio, deposits are usually held in a neutral escrow account by a title company, closing attorney, or, at times, a brokerage escrow account. Your contract should clearly name the escrow holder, list the deposit amount, and spell out how and when funds can be released.

Typical Hilliard deposit sizes

Every deal is different, but here is what many buyers see in suburban Central Ohio:

• Many local offers use about 1% of the purchase price as a guideline.
• A common range for modestly priced homes is roughly 1,000 to 5,000 dollars.
• Highly competitive listings or higher‑priced homes may see larger deposits or special structures.

Amounts shift with market conditions, price point, and seller expectations. In multiple‑offer situations, buyers often raise the deposit or shorten timelines to stand out. When inventory improves, typical deposits may soften. Choose an amount that fits the property, the level of competition, and your comfort with risk.

How escrow works in Ohio

Your purchase agreement controls the rules for your deposit, including deadlines and what happens if the deal does not proceed. Standard forms used in Ohio spell out contingencies, escrow handling, and dispute procedures.

Most title or closing companies maintain escrow accounts that follow state trust accounting rules. Always get a written receipt for your deposit and save every document that shows where the funds came from and when they were transferred. Your lender may ask for bank statements or gift letters to document the source of funds.

Protect your deposit with contingencies

Contingencies are your safety net. Common protections include:

• Inspection contingency. Lets you inspect the home within a set period and cancel or renegotiate if needed.
• Financing contingency. Protects you if you cannot obtain the agreed loan within the timeline.
• Appraisal contingency. Helps if the appraisal comes in low.
• Title or closing contingency. Covers issues that prevent clear title or completing the closing.

If you cancel within the written contingency periods, you typically receive your deposit back. If you breach the contract outside of contingencies, the seller may be entitled to keep the funds, and other remedies may apply. Always track your deadlines closely.

Smart ways to structure your deposit

You can strengthen your offer without taking on unnecessary risk:

• Increase modestly. A credible deposit, such as about 1% of price or 1,500 to 5,000 dollars on many homes, signals commitment without tying up too much cash.
• Keep protections, tighten timing. Offer a larger deposit, but keep clear inspection and financing contingencies, and consider shortening the timelines by a few days.
• Use an escalation clause. Compete on price using a clear maximum while keeping your deposit and contingencies aligned with your comfort level.
• Consider small nonrefundable portions carefully. In very hot moments, some buyers make a small portion nonrefundable after contingencies expire. This can stand out but increases your risk if a surprise arises.
• Show strong qualifications. Pair your deposit with a solid lender pre‑approval, proof of funds, and a clean closing timeline. These often matter as much as the deposit itself.

Safe ways to transfer funds

Wire fraud is a real problem in real estate. Protect yourself with these steps:

• Verify wiring instructions by calling the title company using a phone number you find independently, not one from an email link.
• Use traceable methods, such as a bank wire or cashier’s check.
• Keep all receipts, wire confirmations, and cleared check images.
• Ask the escrow holder how the account is managed and what happens if there is a dispute.

Step‑by‑step buyer checklist

• Decide on a deposit amount that fits the property and competition.
• Name the escrow holder and deposit amount in your offer.
• Get a receipt when you deliver the funds.
• Calendar inspection, appraisal, financing, and title deadlines.
• Provide your lender with source‑of‑funds documents early.
• Verify any wiring instructions by phone before sending money.

Example scenarios

• Example: Entry‑level resale with light competition. You might offer a deposit near the low end of the typical range, keep standard contingency windows, and focus on a strong pre‑approval.
• Example: Popular listing with multiple offers. You could raise the deposit toward 1 to 2 percent, shorten inspection by a few days, and include an escalation clause with a clear cap.
• Example: Higher‑priced home. You might pair a larger deposit with firm proof of funds and a clearly defined timeline, while keeping inspection and financing protections in place.

If the deal does not close

If you cancel within your written contingencies, you typically receive your deposit back. If you breach the contract outside those protections, the seller may be entitled to keep the funds. Many contracts require both parties to sign a mutual release for the escrow holder to disburse money, or the funds may be held until the dispute is resolved.

What happens at closing

On closing day, your earnest money appears as a credit on the closing statement. It reduces how much you need to bring for your down payment and closing costs. Confirm the credit with your lender and closing team so your final cash‑to‑close is accurate.

Get local guidance for Hilliard

Choosing the right deposit and timeline can make your offer stand out without adding avoidable risk. If you want concierge‑level buyer representation and steady guidance from offer to close, connect with Nick Vlasidis. You will get local insight, a clear plan, and hands‑on support through each step.

FAQs

What is earnest money in a home purchase?

• It is a good‑faith deposit that shows you are serious, gives the seller temporary protection, and is credited to your costs at closing.

How much earnest money is common in Hilliard?

• Many buyers offer about 1 percent of price, and a range of roughly 1,000 to 5,000 dollars is common on modestly priced homes, with higher amounts in competitive cases.

Who holds the deposit in Ohio transactions?

• A neutral escrow holder, usually a title or closing company or sometimes a brokerage escrow account named in your purchase contract.

Can I get my deposit back after inspection issues?

• If your contract has an inspection contingency and you cancel within that period, you typically receive the deposit back.

What if the appraisal comes in low?

• If you have an appraisal contingency, you can renegotiate or cancel within the deadline and usually recover your deposit.

How do I avoid wire fraud when sending funds?

• Confirm wiring instructions by calling the title company using a known phone number, and use traceable methods like bank wire or cashier’s check.