Wondering how much earnest money you should put down on a Greer home? You are not alone. A smart deposit can help you win the house you love without putting your cash at unnecessary risk. In a few minutes, you will understand how earnest money works in South Carolina, how much Greer buyers typically offer, who holds the funds, and when you can get them back. Let’s dive in.
What is earnest money?
Earnest money is your good‑faith deposit that accompanies an offer to buy a home. It shows the seller you are serious and intend to close. If the sale closes, the deposit is applied to your down payment or closing costs.
The deposit is separate from your final down payment at closing. It is also different from any optional “due diligence” or option fee language that may appear in a contract. The exact rules come from the purchase agreement you sign and standard practices supported by state REALTOR forms and guidance from the South Carolina Association of REALTORS.
How much should Greer buyers offer?
There is no single right number for every offer. In many markets, 1 to 2 percent of the purchase price is a common starting point. In a multiple‑offer situation, buyers sometimes go higher, such as 3 percent or more, to stand out.
Use price‑based ranges and your budget to decide:
- 1 percent is a conservative starter for many Greer homes.
- 2 percent is more competitive in tight areas.
- 3 percent or more is a strong signal in multiple‑offer situations.
Illustrative examples:
- On a $250,000 home, 1 percent equals $2,500; 2 percent equals $5,000.
- On a $350,000 home, 1 percent equals $3,500; 2 percent equals $7,000.
Your submarket matters. Downtown Greer and move‑in‑ready homes with tight inventory often reward a stronger deposit or shorter contingencies. New‑construction communities or higher‑inventory neighborhoods may accept standard amounts. Always align your deposit with your comfort level, lender advice, and the competitiveness of the property.
Who holds your deposit in South Carolina?
In South Carolina, the person or company named in your purchase contract holds the earnest money in a neutral escrow account. In the Greer area, it is common for a closing attorney, title or closing company, or a broker’s trust account to serve as the escrow holder. Your contract will name the escrow agent.
State rules require brokers and licensees who handle client funds to follow trust account and deposit timing standards under the South Carolina Real Estate Commission. Your agent will make sure the contract names the escrow holder and spells out the deadline for your deposit.
Timing and proof of deposit
Contracts typically require you to deliver earnest money within a set window after acceptance, often within 24 to 72 hours. Plan how you will pay, such as personal check, cashier’s check, certified funds, or wire, based on what the escrow holder accepts. Once delivered, ask for a receipt showing the amount, date, and escrow account. Keep this with your records.
Wire transfer safety
Wire transfers are common, but wire fraud is a real risk. Before sending any funds, verify wiring instructions by calling the escrow holder using a known phone number, not a number from an email. Review the FBI’s guidance on real estate wire fraud prevention, and never rush a transfer without a confirmed call.
When can you get earnest money back?
Refundability depends on your contract and whether you meet the deadlines. Common contingencies that can protect your deposit include:
- Inspection contingency. You can cancel within the inspection period if the contract allows, usually with written notice.
- Financing contingency. If your loan is denied despite good‑faith efforts and the contract includes this protection, your deposit is typically refundable.
- Appraisal contingency. If the home does not appraise for the contract price and the contract gives you a cancellation path, you may receive a refund.
- Title issues. If the seller cannot cure significant title defects, you may cancel per the contract.
- HOA documents review. If allowed in your contract, you can cancel within the review period.
- Negotiated due diligence period. If your contract uses this, cancellation within the period usually results in a refund per the terms.
The contract will list specific dates for each contingency. To preserve your rights, give written notice by the deadline and provide any required documentation.
Quick examples
- You discover major foundation issues during the inspection period and cancel in writing before the deadline. Outcome: refund is typical if the inspection contingency applies and you followed notice rules.
- You waived inspection to strengthen your offer and later find problems. Outcome: your deposit is likely at risk because you removed that protection.
When is your earnest money at risk?
Your deposit is usually at risk if you miss deadlines, breach the contract, or waive key protections. Common situations include:
- You change your mind after all your contingency periods expire.
- You fail to deliver the deposit or other required items on time.
- You waive important contingencies, such as inspection or financing, and later try to cancel.
Many contracts allow the seller to keep the earnest money as liquidated damages if the buyer defaults. Whether that is the seller’s sole remedy depends on the contract language. If a dispute arises, the escrow agent will hold the funds until both parties sign a release or a court or arbitrator directs the disbursement. Forms and practices guided by the South Carolina Association of REALTORS and regulatory standards from the SC Real Estate Commission shape how brokers and attorneys handle these funds.
Greer buyer checklist
Use this step‑by‑step outline to stay organized.
Before you write an offer
- Talk with your lender about pre‑approval and timing so your deposit and deadlines align with your financing plan.
- Ask your agent about typical earnest money ranges for the neighborhood and how competitive the property is.
When you write the offer
- Choose a deposit amount that fits your budget and strategy. Consider both a percentage and a round dollar figure.
- Confirm who will hold the funds and that the escrow agent is named in the contract.
- Negotiate and understand your contingency deadlines, including inspection, financing, appraisal, and any due diligence period.
- Decide how you will deliver the funds and confirm the time limit for delivery.
After acceptance
- Deliver your deposit on time and obtain a written receipt.
- Calendar all deadlines and act in writing by each date.
- Keep copies of your inspection reports, lender letters, and communications.
If problems arise
- Notify your agent immediately and provide documentation.
- Follow the contract’s notice steps to preserve your refund rights.
- Work toward a written mutual release if you need to cancel.
Common mistakes to avoid
- Missing deadlines for inspections, financing, or appraisal.
- Sending a wire without confirming instructions by phone.
- Waiving key protections without a backup plan.
- Assuming a refund is automatic. You need to follow the contract and get a written release.
How your Greer agent helps
A seasoned local agent guides you through each step so your deposit supports your goals. Your agent will:
- Recommend deposit strategies by Greer submarket and price point.
- Draft a clean offer that names the escrow holder and sets clear deadlines.
- Coordinate delivery of funds and provide confirmation of deposit.
- Track every contingency deadline and send timely notices in writing.
- Schedule inspections and help you negotiate outcomes.
- Gather documentation, such as lender denial letters or inspection reports, if you need to cancel under a contingency.
- Advise on wire verification and local closing procedures, drawing on standards supported by NAR consumer resources.
Local tips for Greer buyers
- Ask which closing or title companies and attorneys are commonly used in the neighborhood you are targeting. Local teams have established escrow procedures that make delivery and receipts straightforward.
- If you are competing in Downtown Greer or for a fully updated home with low inventory, be ready to strengthen your offer with a larger deposit or tighter timelines, while still protecting yourself with clear contingency language.
- Relocating to the Upstate? Lean on your agent to coordinate escrow logistics and confirmations. Always get receipts in writing.
Ready to buy with confidence?
You deserve a smooth, well‑managed path from offer to closing. If you want clear advice on how much to offer, how to protect your deposit, and how to time each step, connect with Victor Lester for a local strategy session that fits your goals.
FAQs
What is earnest money in a South Carolina home purchase?
- It is a good‑faith deposit held in escrow that shows you are serious, is applied to your costs at closing, and is governed by the contract and state‑guided practices.
How much earnest money should a Greer buyer offer on a $300,000 home?
- Many buyers start around 1 to 2 percent, which is $3,000 to $6,000, and go higher in multiple‑offer situations if it fits their budget and risk tolerance.
Who holds earnest money in a typical Greer transaction?
- The contract names the escrow holder, often a closing attorney, title or closing company, or a broker’s trust account that follows SC Real Estate Commission rules.
Is earnest money refundable if my financing falls through in South Carolina?
- If your contract includes a financing contingency and you act in good faith and provide notice by the deadline, refunds are typically allowed under the contract terms.
How do I avoid wire fraud when sending earnest money in Greer?
- Call the escrow holder using a known phone number to verify instructions before you send funds and review the FBI’s real estate wire fraud tips.
How quickly do I need to deliver earnest money after my offer is accepted?
- Most contracts set a short window, often 24 to 72 hours. Check your agreement and deliver on time, then get a written receipt for your records.
