Buying in Alpharetta can move fast. One moment your offer is accepted, and the next you’re asked to wire thousands of dollars in earnest money. It can feel like a lot, especially if this is your first home or you’re moving up to a higher price point.
You want to protect your money, keep your offer competitive, and avoid surprises. That’s exactly what this guide will help you do. You’ll learn how much earnest money is common in Georgia and North Fulton, when it’s due, who holds it, how contingencies work, and the simple steps that keep your deposit safe.
Let’s dive in.
What earnest money is
Earnest money is a deposit you make after your offer is accepted to show good faith and secure the contract while you work through contingencies. It tells the seller you’re serious. If the sale closes, the deposit is credited toward your cash at closing.
The purchase agreement controls how the deposit is handled. If you default under the contract, the seller may have a claim to the funds, depending on the terms and the situation.
Typical amounts in Alpharetta
Earnest money varies by price and how competitive the market is. In Georgia’s suburban markets, it’s common to see deposits around 1% to 2% of the purchase price. In less competitive situations or at lower price points, you might see a flat amount, often in the range of a few thousand dollars.
In Alpharetta and North Fulton, stronger demand can push deposits higher, especially on well-presented homes or in multiple-offer situations. Sellers may expect larger deposits or faster timelines. Ask your local agent for a current range based on recent Alpharetta closings at your price point.
When your deposit is due
Your contract sets the deadline. Many agreements require the buyer to deliver earnest money within a short window after ratification, often 24 to 72 business hours. Ratification generally means both parties have signed the contract and reached mutual acceptance.
Before you submit an offer, confirm the exact deadline, who will hold the funds, and how you will deliver them. Build the deposit step into your calendar so you do not miss it.
Who holds your funds
The contract names the escrow holder. In Georgia, earnest money is commonly held by a title company, a closing attorney, or a broker’s trust account. The holder must keep the funds in a trust account and release them only as provided in the contract or by agreement of the parties.
Always request a written receipt showing the amount, date, and the account where funds are held. Keep that receipt with your transaction records.
How to pay and avoid fraud
Wire transfers are common for earnest money, though certified checks or other methods may be allowed. If you wire funds, protect yourself from wire fraud:
- Verify wiring instructions by calling the title company or closing attorney at a known, trusted phone number.
- Do not rely only on email instructions. If something looks off, call before sending money.
- Confirm that the account name on the instructions matches the named escrow holder in your contract.
- After sending funds, request written confirmation of receipt the same day.
Contingencies and refunds
Contingencies protect you while you investigate the home and finalize financing. Common Georgia contingencies include:
- Inspection contingency
- Financing (mortgage) contingency
- Appraisal contingency
- Title review contingency
- HOA or condo document review
- Sale-of-home contingency (less common in competitive periods)
If you cancel within an agreed contingency period and follow the contract’s notice process, your earnest money is typically refunded. If you miss a deadline or do not follow the contract’s procedures, you could jeopardize your refund. Track every date and deliver required notices in writing.
If the deal falls through
What happens to your deposit depends on why the contract ends and what your agreement says:
- Valid termination under a contingency: Your earnest money is generally returned to you.
- Buyer default without a contractual right to terminate: The seller may seek to retain your deposit as liquidated damages if the contract allows it, or pursue other remedies laid out in the agreement.
- Dispute over who gets the funds: The escrow holder will usually continue to hold the money until both parties sign a release or a court or arbitrator directs how to distribute it.
How it applies at closing
If your transaction closes, your earnest money becomes a credit toward the amount you need to bring to closing. You will see the credit on your closing statement, such as a Closing Disclosure for financed loans.
Risks and offer strategy in Alpharetta
In active periods, Alpharetta sellers often prefer offers with stronger deposits, shorter inspection windows, and tight, clear timelines. That can help you win, but it also raises risk if you cannot meet a contingency deadline.
Consider the tradeoffs:
- Larger deposits can strengthen your offer but increase your exposure if you default.
- Shorter or waived contingencies reduce protections. This is risky unless you have high confidence in your financing and the property condition.
- Clear, written timelines reduce mistakes. Build in enough time for inspections, appraisal, and loan approval while staying competitive.
Your best move is to tailor deposit size and contingency lengths to the property and current Alpharetta conditions, guided by a local agent who knows recent closings and typical seller expectations.
Step-by-step checklist
Use this quick plan to protect your deposit and your deal:
Before you offer
- Ask your agent for current earnest-money ranges for similar Alpharetta homes.
- Have a pre-approval letter and proof of funds ready.
In the contract
- Name the escrow holder with contact details.
- Set the deposit amount and delivery deadline in clear terms.
- Spell out inspection, financing, and appraisal timelines and how notices must be delivered.
- Include a wire verification step and call the title company at a trusted number to confirm details.
After deposit
- Get a written receipt showing the date and where funds are held.
- Calendar every contingency deadline and send notices in writing before the cutoff if you need to cancel or request changes.
- Keep copies of inspection reports, lender updates, and any repair agreements.
If you need a refund
- Follow the contract’s cancellation process exactly, in writing and on time.
- If the seller disputes, the escrow holder may keep funds in trust until both parties sign a release or a court or arbitrator decides. Consider consulting a real estate attorney if the dispute continues.
Work with a local guide
Every Alpharetta transaction is a little different. The right earnest-money amount, the best timelines, and the safest steps depend on the home, the seller’s goals, and the current pace of the market. You deserve a plan that protects your deposit and strengthens your offer.
If you’re buying in North Fulton or the North Atlanta suburbs, connect with a local advisor who will track the details, verify funds, and keep your deal on schedule. Work with Bonnie Espy to set your earnest-money strategy with confidence and move from offer to closing with clarity.
FAQs
How much earnest money do Alpharetta buyers offer?
- It depends on price and competition. Ranges often run from a few thousand dollars up to 1% to 2% of the purchase price, with higher amounts in hot, multiple-offer situations.
When is earnest money due after offer acceptance?
- The contract sets the deadline. Many Georgia contracts require delivery within a short window after ratification, often 24 to 72 business hours.
Who holds earnest money in Georgia?
- The escrow holder named in your contract, commonly a title company, closing attorney, or a brokerage trust account. Always request a written receipt.
Can the seller keep my earnest money if we cancel?
- Possibly, if you default and the contract allows the seller to retain the deposit as liquidated damages. If you cancel properly under a valid contingency, your deposit is typically refunded.
How is earnest money used at closing?
- It is credited toward your funds due at closing, such as the purchase price or closing costs, and appears on your closing statement.
