Worried about how much you need for earnest money in San Ramon or what happens to it if things change? You are not alone. This small line item can have a big impact on how strong your offer looks and how protected your money is. In this guide, you will learn what earnest money is, how it works in California, typical ranges for San Ramon and the Tri‑Valley, how contingencies affect refunds, and smart steps to protect your deposit. Let’s dive in.

What is earnest money

Earnest money, also called an earnest money deposit or EMD, is a good‑faith deposit you submit with your offer to show you are serious about buying. The money is held by an impartial escrow or title company and is credited to your down payment and closing costs if the sale closes. It gives the seller short‑term financial security and helps strengthen your offer.

How it works in California

In California, the purchase contract outlines the deposit amount, who holds it, and the timing for delivery. In the San Ramon and Contra Costa County market, buyers commonly use the California Residential Purchase Agreement, which states when you must deliver the funds to escrow. The deadline is usually soon after acceptance, often within a few days, so plan to have the cash ready.

Escrow or title companies hold your funds in an escrow account and apply them to your buyer funds at closing. If there is a cancellation or dispute, the release of funds follows the contract and requires mutual written instructions or a court decision. If you default after removing contingencies, the seller may be entitled to keep the deposit as damages, subject to the agreement and California law. If you cancel within a valid contingency period per your contract, your deposit is typically refundable.

How much do San Ramon buyers put down

Across California, a common range is 1% to 3% of the purchase price for an earnest money deposit. In competitive Bay Area submarkets like San Ramon and the broader Tri‑Valley, buyers sometimes offer higher deposits to stand out, especially if they are also shortening or waiving contingencies.

What affects the amount:

• Market conditions. In strong multiple‑offer settings, larger deposits are often expected.
• Offer strength. Cash offers or short contingency periods sometimes pair with larger deposits.
• Price level. A percentage approach scales the dollar amount with the home’s price.
• Risk tolerance. First‑time buyers often prefer smaller deposits and stronger protections.

Illustrative examples:

• 1% of 800,000 equals 8,000
• 2% of 1,200,000 equals 24,000
• 3% of 1,500,000 equals 45,000

Local practice varies. Some offers use a modest initial deposit with an additional deposit due after acceptance, while others use a single deposit in the 1% to 3% range. Always align the deposit with your comfort level and the current San Ramon market.

Contingencies and refunds

Contingencies protect your deposit by giving you specific reasons and timelines to cancel. If you cancel within the agreed contingency period and follow the contract process, your EMD is typically refundable. Once you remove a contingency, that protection ends.

Inspection contingency

This gives you time to investigate condition. If you cancel within the inspection window per the contract, the EMD is generally refundable. If you remove the inspection contingency and later do not close, the deposit can be at risk.

Loan contingency

If you cannot secure financing within the contingency period and cancel properly, your deposit is usually refundable. If you remove the loan contingency and later cannot close, the seller may claim the EMD.

Appraisal contingency

If the appraisal comes in below the purchase price, you can try to renegotiate, bring extra cash, or cancel within the appraisal contingency period. Refundability depends on what your contract allows and what you have removed.

Title and seller performance

If title issues arise or if the seller does not meet contract obligations and you cancel per the agreement, your deposit is typically refundable.

Timing and procedures

Follow the written notice steps and deadlines in your contract. Missed dates or informal notices can weaken your right to a refund. Escrow usually needs mutual written instructions to release funds if there is a disagreement.

Protect your deposit

Use these practical steps to reduce risk while keeping your offer competitive:

• Keep key contingencies, and shorten timelines only if you are confident. Do not remove protections lightly.
• Calendar all contingency and deposit deadlines on day one. Send notices in writing and keep records.
• Pair a right‑sized deposit with strong financing proof. A full lender pre‑approval shows commitment without extra risk.
• Ask for clear escrow instructions before you send money. Confirm payee details, method, and due date.
• Avoid non‑refundable deposits unless the situation and counsel make it appropriate. These are high risk for buyers.

Offer strategies in competitive markets

You can tailor your EMD to match conditions in San Ramon and the Tri‑Valley:

• Larger EMD. Signals strength and commitment. Risk increases if you remove contingencies.
• Standard EMD with strong proof. Combine a typical 1% to 3% deposit with a firm pre‑approval and verification of funds.
• Split deposit. Start with a modest initial deposit, then add to it after acceptance per the contract. This balances cash flow and commitment.
• Non‑refundable deposit. Consider only with caution and advice. This changes your risk profile and should be clearly documented.

Before you write an offer

Create a short plan with your agent so you can move quickly and protect your funds:

• Decide how much EMD you can afford to risk in dollar terms and as a percentage.
• Choose which contingencies you must keep and which timelines you might shorten.
• Get a written lender pre‑approval and have your proof of funds ready to attach to the offer.
• Confirm the escrow holder, delivery method, and exact timing for the deposit.
• Review all contingency deadlines and put them on a shared calendar.
• If you are considering waiving major protections or a non‑refundable deposit, discuss the tradeoffs and seek legal counsel if needed.

Your local advantage in San Ramon

A right‑sized deposit, clear contingency strategy, and clean execution can make your offer both strong and safe. If you want tailored guidance for San Ramon and the Tri‑Valley, partner with a local expert who understands current norms, timing, and negotiation signals. With more than four decades of local experience, Patty helps you calibrate your deposit and protections to the market so you can compete with confidence.

Ready to talk strategy for your next offer in San Ramon or nearby communities? Connect with Patty Barry for local guidance and a calm, step‑by‑step plan.

FAQs

What is earnest money in a California home purchase

• It is a good‑faith deposit held by escrow that shows commitment, is credited to your closing funds, and can be at risk if you default after removing contingencies.

How much earnest money do San Ramon buyers typically put down

• A common range is 1% to 3% of the purchase price, with higher amounts sometimes used in competitive Tri‑Valley situations to strengthen an offer.

When is the deposit due after an offer is accepted in California

• The purchase contract sets the deadline, often within a few days of acceptance, so plan to have funds ready to deliver to the named escrow or title company.

Can you get your earnest money back if the appraisal comes in low

• If you have an appraisal or loan contingency and cancel within that window following the contract, the EMD is typically refundable.

What happens to the deposit if the buyer and seller disagree about a refund

• Escrow usually needs mutual written instructions or a court decision, so the funds are held until the parties agree or a judgment resolves the dispute.

Are non‑refundable deposits common in San Ramon

• They are less common and higher risk for buyers, and they should only be used after careful counsel and clear documentation in very competitive situations.