Earnest Money Explained for Brentwood Buyers

You found the right home in Brentwood and you are ready to write an offer. Then your agent mentions earnest money. How much should you put down, where does it go, and how do you keep it safe? You are not alone if this part feels unclear.

This guide breaks down how earnest money works in Brentwood and Williamson County, what sellers expect, and how you can protect your deposit while writing a competitive offer. You will learn the right amount to consider, timing, contingencies, and practical steps that reduce risk.

Let’s dive in.

What earnest money is

Earnest money is a good‑faith deposit that shows the seller you intend to complete the purchase. It is written into your contract and held in escrow by a named third party. If the sale closes, the money is credited to your purchase at closing.

If the deal does not close, your contract controls what happens next. Depending on contingencies and deadlines, the deposit can be returned to you, retained by the seller, or held while a dispute is resolved.

How much to offer in Brentwood

In many U.S. markets, earnest money often ranges from about 1 to 3 percent of the purchase price. Brentwood is a higher‑priced, often competitive market, so deposits here tend to be on the higher end of that range.

A practical way to think about it:

• Conservative offers: about 1 to 2 percent, or a flat $5,000 to $10,000, depending on price point.
• Competitive listings: several thousand to tens of thousands of dollars, or a higher percentage, to show stronger intent.

A larger deposit can make your offer stand out, but it also increases your exposure if you waive protections or miss deadlines. Balance strength and safety.

When and where you deposit

Your contract names the escrow holder and sets the deposit deadline. In Tennessee, funds are typically held by a title company, a closing attorney, or a brokerage escrow account.

• Timing: most contracts require deposit within a short window, such as 24 to 72 hours, upon contract ratification, or within 3 business days. The exact language in your offer controls.
• Methods: certified check or wire transfer are common, while some escrow holders allow a personal check. Wires are typical for larger deposits.
• Proof: save your wire confirmation or a receipt from the escrow holder. Keep clear records in case questions come up later.

Contingencies that protect your deposit

Your protections come from what the contract says and whether you meet each deadline. Common safeguards include inspections, financing, appraisal, and title review.

Inspection window in Brentwood

Local offers often include a 7 to 10 day inspection period, though the exact length is negotiated. During this window, you can inspect, request repairs or credits, or in some cases terminate under the contract terms. The deadline must be clear and met.

Financing and appraisal timelines

Lenders usually need about 21 to 30 days to clear loan conditions. Appraisal timing often follows your lender’s process. Your contract should spell out how an appraisal shortfall is handled and when the loan contingency is removed.

Title and survey review

Your contract should allow time to review title and any survey issues and define your remedies if something unacceptable appears. Work with your title company or attorney to keep this on schedule.

Deadlines control outcomes

Missing a contingency deadline can remove your protections. If you do not deliver notice on time, you may lose the right to a refund.

Strategies to strengthen your offer without needless risk

In multiple‑offer situations, sellers often expect stronger terms. You can be competitive while still protecting your deposit.

• Increase earnest money within your comfort zone. A larger number can signal seriousness without changing price.
• Get full pre‑approval, not just prequalification. Include your letter to reassure the seller.
• Use appraisal gap language with a clear cap if you are willing to bridge a shortfall.
• Consider a shorter, realistic inspection period. You can also do a pre‑offer walk‑through with your inspector when possible.
• Be precise about any waivers. For example, limit a financing waiver to a specific loan type or conditions.
• Escalation clauses and non‑refundable “option” fees appear in competitive cases, but they increase risk. Document them carefully and understand the consequences before you agree.

What happens if a deal ends or a dispute arises

If the sale closes, your earnest money applies to your down payment or closing costs. If you terminate within a valid contingency and hit every deadline, your deposit is usually returned under the contract.

If you default outside the contract’s protections, many Tennessee contracts allow the seller to keep the earnest money as liquidated damages, up to the amount of the deposit. The contract controls other remedies.

If there is a disagreement about release, the escrow holder follows the contract’s instructions. Without a mutual written release, the escrow agent may hold funds, seek mediation or arbitration if required, or deposit the funds with the court.

Step‑by‑step: handling your earnest money

Follow this simple checklist to stay organized and protected:

1. Align on amount: match market conditions and your risk tolerance.
2. Name the escrow holder: title company or closing attorney is standard.
3. Set timing in writing: state when funds are due and how they will be delivered.
4. Choose delivery method: wire or certified check, then confirm receipt.
5. Document contingencies: inspection, financing, appraisal, title, and clear deadlines.
6. Track deadlines: use calendar reminders for every contingency date and notice period.
7. Confirm release instructions: ensure the contract spells out how funds are disbursed.
8. Review non‑standard terms: speak with your agent and, for higher‑risk clauses, a real estate attorney before you sign.

Work with a Brentwood advisor who knows the details

In Brentwood’s high‑value market, the best earnest money strategy is precise, fast, and tailored to the listing. You want an advisor who can read the room, shape a compelling offer, and protect your deposit with tight language and timelines. That is the level of representation our clients expect and receive.

If you are planning a move in Brentwood or greater Williamson County and want a clear plan for earnest money and offer terms, connect with Custer Rowland. We pair boutique, relationship‑driven service with proven systems to help you compete with confidence.

FAQs

Is earnest money refundable in Tennessee home purchases?

• It depends on your contract and deadlines. If you terminate within an active contingency, the deposit is usually refundable under the contract terms.

How much earnest money should I offer in Brentwood?

• Many buyers consider 1 to 3 percent of the price, with Brentwood often on the higher end. Your exact number should reflect the home’s competitiveness and your comfort level.

Who holds my earnest money and how do I pay it?

• The contract names an escrow holder, usually a title company, closing attorney, or a brokerage escrow account. Payment is often by wire or certified check.

How fast do I need to deposit earnest money?

• Your contract sets the deadline. Common language requires deposit within 24 to 72 hours, upon ratification, or within 3 business days. Late deposit can create a breach.

What if the seller refuses to release earnest money I am owed?

• The escrow holder follows the contract. Without a mutual release, the funds may be held pending mediation, arbitration, or a court process.

Are non‑refundable deposits a good idea in multiple‑offer situations?

• They can make your offer stand out, but they increase risk. If you consider one, limit it carefully, pair it with strong financing, and review the terms with your agent and an attorney.