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On an MLS listing, put down enough earnest money that the listing agent takes your offer seriously, have it held by a title company, and keep it refundable with an inspection or option period. Many investors start around 1% of the price and adjust from there. The $10 or $100 deposits that can work with a private seller usually read as "may not close" on a listed property, because the agent compares your deposit with every other offer on the table.
This guide is for wholesalers and cash investors making offers on listed properties.
Why earnest money matters more on listed properties
With a private seller, you are the only offer and the conversation is about price. On a listing, the agent puts your offer next to every other one and shows the seller the terms that matter: price, cash or financing, how fast you close, and how much you put down. The deposit is the one number that tells them you'll actually show up at closing.
That's why the same wholesaler who puts $100 down on a direct-to-seller deal often loses listed deals at a higher price. The agent isn't judging your price. They're judging the risk that the house comes back on the market in three weeks.
Earnest money on a listing also goes to escrow, usually the title company or closing attorney named on the contract, not to the seller. It sits there until closing, where it's credited toward the price, or until the contract ends and the contract says who gets it.
How much to put down
There's no legal minimum, and what's normal varies by market. A simple way to pick your number:
- Start at about 1% of the price. It's a common starting point, and listing agents recognize it.
- Keep a floor. A few hundred dollars on a $300,000 house reads as a placeholder, not a commitment, even if the percentage math is low.
- Go up when the listing is competitive. A new listing with several offers rewards a bigger deposit and a shorter inspection period.
- Stay near your starting point on aged listings. A house that has sat for 180 days needs certainty more than a bigger check. A clean offer, proof of funds and a firm closing date often do more than an extra $2,000.
Here's the 1% math at common price points:
| List or offer price | About 1% |
|---|---|
| $150,000 | $1,500 |
| $250,000 | $2,500 |
| $400,000 | $4,000 |
If cash is tight, split it. The Florida AS IS contract has an initial deposit and a separate additional deposit, each with its own due date. Put a smaller amount down at signing and time the additional deposit for after your inspection period, so the bigger number only goes in once you've lined up your buyer.
How your deposit stays refundable
The deposit is only at risk once your window to walk away closes. Know your form's clocks before you send the offer.
- 1
Offer accepted
The Effective Date starts every clock
- 2
Deposit to escrow
Initial deposit to the title company, often within 3 days
- 3
Inspection window
Line up your buyer; you can still cancel and get it back
- 4
Window closes
Any additional deposit is due and the money is at risk
- 5
Closing
The deposit is credited toward the price
Florida: the FAR/BAR AS IS contract
- Initial deposit, paragraph 2(a): due within the days you write in, or 3 days after the Effective Date if you leave it blank.
- Additional deposit, 2(b): due within the days you write in, or 10 days if blank.
- Inspection Period, 12(a): the days you write in, or 15 days if blank. During it you can cancel in your sole discretion with written notice and get the deposit back.
- After the Inspection Period: if the buyer fails to close, paragraph 15(a) lets the seller keep the deposit as agreed liquidated damages.
The FAR/BAR AS IS contract guide walks through each of these lines.
Texas: TREC 20-19
- Earnest money and option fee: both go to the escrow agent within 3 days after the Effective Date.
- Option Period: the days you write in paragraph 5. Terminate inside it and the earnest money comes back; the option fee does not, but it's credited to the price if you close.
- Late money: late earnest money lets the seller terminate, and a late option fee costs you the right to walk during the Option Period.
The TREC 20-19 guide covers the paragraph 5 and 6 deadlines.
Other states
Look for the inspection, due diligence or option paragraph on your state's form and the days it gives you. North Carolina adds a separate due diligence fee paid to the seller; the NC Offer to Purchase and Contract guide explains how it differs from the earnest money. That window is your safety net, so write the days in on purpose instead of leaving the default.
Plan for several deposits at once
At volume, the deposit question changes. If you send offers every week, two or three can get accepted in the same few days, and each deposit is due within days of acceptance. Set your standard deposit so you can cover that week, not just one deal.
Three habits keep the cash moving:
- Find your buyer inside the window. Market the deal the day it's accepted, not after inspections end. The assignment clause guide covers what to put in the contract so you can assign it.
- Take a deposit from your end buyer. Have your cash buyer put down a non-refundable deposit when they sign the assignment, so your own deposit isn't the only money at risk.
- Calendar every deadline. The day the contract is signed, put the deposit date and the last day to cancel on your calendar. Most lost deposits come from a missed date, not a bad deal.
Write it the same way on every offer
Agents trust offers that look like they came from someone who does this every week: the same escrow agent, the same deposit logic, the same inspection days. I built SendMLS so those terms are saved once. Your earnest money, additional deposit and inspection days fill into your state's contract on every offer, along with the owner, parcel and legal description from county records. The signed offer then goes to the listing agent from your own Gmail with proof of funds attached.
Pair the deposit with proof of funds that covers the price, and the agent has everything they need to take your offer to the seller.
FAQ
How much earnest money should a wholesaler put down on an MLS listing?
Enough that the listing agent takes the offer seriously. Many investors start around 1% of the price and go higher on competitive listings. Keep it refundable with an inspection or option period, and have it held by a title company or closing attorney.
Is earnest money refundable if I can't find a buyer?
It is if you cancel in writing before your inspection or option period ends. After that, the contract's default terms apply, and on many forms the seller can keep the deposit. Find your buyer inside the window.
Who holds the earnest money on a cash offer?
The escrow agent named in the contract, usually a title company or closing attorney, not the seller. At closing it's credited toward the price.
Can I put down less earnest money on a 180-day listing?
Often yes, because the seller cares most about a sure close. A clean offer with proof of funds, a short inspection period and a firm closing date can matter more than a bigger deposit. Read the listing remarks for the seller's terms.
When is earnest money due after the offer is accepted?
It depends on the form. On the Florida AS IS contract the initial deposit is due within the days you write in, or 3 days after the Effective Date if blank. On TREC 20-19 the earnest money and option fee are due within 3 days.
Send your next ten offers by lunch
Earnest money is one line on the contract, and it should be the same smart number on every offer. Start a free 7-day trial of SendMLS: type an address, it fills your state approved contract with your saved deposit and inspection days, and sends it from your own Gmail with proof of funds and open tracking. Or see how it works first. For the bigger picture, the guide to wholesaling MLS properties covers the whole process.
This is general information, not legal advice; check your state's form and your contract with a local real estate attorney.