You found the right home in Bend and you are ready to write an offer. Now comes a key decision: how much earnest money should you put down and what protects it. You want to compete confidently without taking on unnecessary risk. In this guide, you will learn what earnest money is in Oregon, typical amounts for Bend, when it is refundable, and how to use it to strengthen your offer. Let’s dive in.
Earnest money basics in Oregon
Earnest money is a good‑faith deposit you include with your offer to show commitment. It is not your down payment or closing costs. If you close, the deposit is credited toward those amounts.
In Oregon, your earnest money is usually deposited with the escrow or title company named in the purchase agreement, or into a broker’s trust account according to the contract. You should receive written confirmation of where it was deposited and the amount. Keep that receipt.
Your signed purchase agreement controls how the deposit is handled. It outlines deadlines, contingencies, and what happens if there is a dispute. Oregon brokers and escrow agents follow state rules for client funds, but your specific timelines and refund rights live in the contract you sign.
Bend earnest money amounts
Bend has seen steady competition from local buyers, relocators, and second‑home purchasers. The size of your deposit signals seriousness and can help your offer stand out.
- Lower‑priced or less competitive scenarios: common deposits are $1,000 to $5,000.
- Many single‑family home offers: about 1% to 3% of the purchase price, rounded to a clean number.
- High‑competition situations or waived‑contingency offers: 3% to 5% or more.
- Cash buyers and investors: often submit larger deposits with proof of funds.
Exact norms shift with inventory and price tier. The right number for a townhome, a luxury residence, or an acreage property can differ. Align your deposit with current conditions and the specific property.
When your earnest money is refundable
Your earnest money can be refundable when you cancel according to the written terms of your contract and within the deadlines. Common protections include:
Refundable scenarios
- Inspection contingency: If your inspection uncovers issues and you cancel or negotiate within the inspection window, your deposit is usually returned.
- Financing contingency: If you cannot obtain financing per the contract and cancel on time, you typically receive a refund.
- Appraisal contingency: If the appraisal comes in low and you cannot reach agreement on price or terms, you can often cancel and recover the deposit.
- Title or HOA review: If title problems or HOA documents are unacceptable and you cancel within the allowed period, the deposit is usually refundable.
When refunds are at risk
- You cancel after contingencies expire without seller agreement.
- You breach the contract by failing to perform. The seller may seek liquidated damages, including keeping the earnest money, subject to the contract.
- You waive key contingencies and later cancel. Your risk of losing the deposit increases.
If there is a dispute, escrow typically holds the funds until both parties sign a release or there is a legal resolution. Follow notice procedures exactly and keep written records.
Timelines and steps in Bend
Deposit timing
Most contracts require delivery of earnest money shortly after mutual acceptance, often within 1 to 3 business days. Confirm who holds the funds and get a written receipt from the escrow or title company. Ask the escrow officer which payment methods they accept. Wires, cashier’s checks, or certified checks are common for larger sums.
Contingency windows
- Inspection period: often 7 to 10 calendar days, though 5 to 14 days is common depending on negotiation.
- Financing: commonly 14 to 21 days. Complex loans or new construction may take longer.
- Appraisal: typically runs alongside underwriting and is addressed before closing.
- Closing: many transactions close in 30 to 45 days, adjusted for seller needs and loan type.
Your purchase agreement controls the actual dates. Put reminders on your calendar and work closely with your broker, lender, and inspector.
What happens at closing
Escrow conducts the title search, prepares closing statements, and disburses funds. Your earnest money applies toward your down payment or closing costs when you sign and the transaction records.
Offer‑strength strategies for Bend buyers
In a competitive Bend market, you can tailor your earnest money and terms to add confidence for the seller while managing risk.
- Larger deposit: A bigger earnest‑money number shows commitment. Balance it with the protections you need.
- Shorter inspection period: Tightening the timeline can help your offer, but be sure your inspector’s schedule works.
- Strong financing evidence: Provide a fresh preapproval from your lender and a clear path to loan commitment.
- Appraisal gap coverage: Offer to cover a portion of any appraisal shortfall up to a set amount.
- Escalation clause: Let your offer rise to compete, with a cap you are comfortable with.
- Waive contingencies cautiously: Only after you understand the risks and have a plan if something changes.
- Proof of funds: Especially helpful for cash or high‑down‑payment buyers and second‑home purchasers.
Special notes for second‑home and acreage buyers
If you are buying a second home or acreage, your lender may require a higher down payment and liquid reserves. Being clear about your funds and timelines helps your offer read as reliable. Remote buyers benefit from using local brokers and title companies experienced with out‑of‑area closings, electronic signing, and coordinated inspections.
Risk‑management checklist
- Get written proof of deposit and escrow acceptance.
- Track contingency deadlines and notice requirements.
- Keep written records of inspections, lender updates, and notices.
- Confirm deposit location and accepted payment methods with escrow.
- Talk with your broker, lender, and, if needed, an attorney before waiving major contingencies.
Quick examples to frame your strategy
- If you are offering on a $800,000 home, 1% is $8,000 and 3% is $24,000. A deposit in that range is common for active competition. In a bidding war, some buyers go higher.
- If the inspection reveals significant issues and you cancel within the inspection period, you can usually recover your deposit.
- If you waive the appraisal contingency and the appraisal comes in low, you may need to bring extra cash or risk losing the deposit if you back out.
The bottom line for Bend buyers
Your earnest money is a tool. The right amount and the right protections can help you win the home while safeguarding your funds. Match your deposit and timelines to the property, the competition, and your comfort with risk. If you are relocating or purchasing a second home in Central Oregon, a clear, local plan makes all the difference.
Ready to craft a winning offer with smart protections in Bend. Connect with Julie Reber to map your deposit strategy, timelines, and offer terms. Schedule a Free Consultation.
FAQs
How much earnest money should I offer in Bend
- Many buyers use $1,000 to $5,000 in modest competition, and about 1% to 3% of price for typical offers, with higher amounts in competitive situations.
When do I have to deposit my earnest money in Oregon
- Most contracts require delivery within 1 to 3 business days after mutual acceptance; confirm the exact deadline and recipient in your agreement.
Is my earnest money refundable if the appraisal is low
- If you have an appraisal contingency and follow the contract’s notice rules, you can often cancel and receive your deposit back if no agreement is reached.
What if the seller will not release my earnest money after I cancel properly
- Escrow generally holds funds until a mutual release or legal resolution; consult your broker, escrow officer, and consider legal guidance.
Can I pay earnest money by wire or check in Bend
- Escrow companies commonly accept wires, cashier’s checks, or certified checks; some may allow personal checks for smaller sums—ask escrow for their requirements.
What is the difference between earnest money and an option fee in Oregon
- Earnest money is a good‑faith deposit applied at closing, while an option fee is usually a separate, nonrefundable payment for an agreed right to terminate within a short option period if used.
