What happens to your money after a seller accepts your offer? If you are buying in Millard, the earnest money deposit can feel like a big unknown. You want your offer to stand out without putting your cash at risk. In this guide, you will learn what earnest money is, typical amounts in the Omaha metro, when it is refundable, and how it flows through escrow to closing. Let’s dive in.
Earnest money basics
Earnest money is a deposit you make after your offer is accepted. It shows the seller you are serious and gives them some protection while contingencies are resolved. It is not an extra fee. If you close, it is credited toward your down payment or closing costs.
In our area, the funds are held in a trust account. That is usually a local title or escrow company, or a real estate broker’s trust account, as stated in your purchase agreement. The escrow holder will issue a written receipt and hold the money until closing or a signed termination.
The amount and timing matter. A strong deposit can help your offer look more credible, and fast delivery shows you can follow through.
How much to put down in Millard
Typical Omaha-area deposits for entry-level homes often land between $1,000 and $5,000. For many single-family homes, buyers use about 1 to 2 percent of the purchase price. In more competitive situations, a higher deposit can set your offer apart.
What should guide your number:
- Current market conditions and seller expectations
- Your financing type and contingencies
- Your comfort with risk and timeline
If you are eyeing a higher-priced property, a percentage approach is common. Your agent can help you balance a strong amount with the protection you need from your contingencies.
Who holds your deposit
Your purchase agreement will name the escrow holder and spell out how funds are handled. In many Omaha metro transactions, a title or escrow company holds the money in a trust account. Sometimes a brokerage trust account is used.
After you deliver the funds, the escrow holder posts them to the trust account and issues a written receipt to both sides. Keep that receipt with your records.
When it is refundable
Your earnest money is typically refundable if you cancel within a valid contingency window and follow the contract steps exactly. Common contingencies include:
- Inspection: You may cancel if the inspection reveals unacceptable issues and you act within the period set by the contract.
- Financing: If you cannot secure loan approval within the allowed time, you can usually terminate and receive a refund when you give proper notice.
- Appraisal: If the property does not appraise at the purchase price and negotiations fail, you may terminate under the appraisal contingency and recover your deposit.
- Title: If a title issue cannot be resolved, you can usually terminate and receive a refund.
Deadlines and written notices are critical. If you miss a deadline or do not provide notice the way the contract requires, you may lose refund rights.
When it is at risk
You may forfeit your deposit if you default without a contractual right to cancel. For example, if you waive contingencies, then back out for a reason that the contingency would have covered, the seller may be entitled to keep your deposit as liquidated damages. Contracts also outline how disputes are handled, such as mutual release, escrow disbursement instructions, or court involvement if needed.
How your deposit applies at closing
If the sale closes, your earnest money appears as a credit on the settlement statement and goes toward your cash due at closing. It reduces what you need to bring for your down payment and closing costs.
If the contract ends under a valid contingency, escrow returns the funds according to the signed termination or mutual release. If the buyer defaults and the contract allows the seller to retain the funds, escrow will follow those instructions.
Millard timelines you can expect
Every contract sets its own deadlines, but many local transactions follow this general pace:
- Deposit delivery: Often due within 24 to 72 hours after acceptance. Follow the purchase agreement.
- Inspection window: Commonly 5 to 14 days from acceptance, depending on what you negotiate.
- Loan and appraisal: Your contract will state timing for loan commitment and appraisal results.
- Closing date: Often 30 to 45 days from acceptance, based on financing and title work.
These timeframes vary. Your agent will help you negotiate them and keep you on track.
Step-by-step deposit and escrow coordination
- Write the offer: Include the earnest money amount and who will hold it. Prepare a check payable per escrow instructions or plan a wire per the title company’s requirements.
- After acceptance: Deliver the funds to the named escrow holder within the contract deadline. Your agent will request a written receipt right away.
- During contingencies: Escrow holds the funds while you complete inspections, appraisal, and loan steps. Any amendments you sign should be sent to escrow.
- If you cancel with a valid contingency: Escrow returns funds according to the signed termination or mutual release.
- At closing: Escrow applies your earnest money as a credit on the Closing Disclosure. You will see it counted toward your total cash to close.
Smart tips to protect your deposit
- Confirm the exact amount and delivery deadline in the purchase agreement.
- Get a written receipt from the escrow or title company as soon as you deposit funds.
- Track every contingency date and keep copies of all notices and responses.
- Call a known contact at the title company to verify any wiring instructions. Wire fraud is real. Never rely only on an email for routing numbers.
- If you plan a small deposit, know that sellers may favor offers with higher or faster deposits.
Common mistakes to avoid
- Missing the deposit deadline or inspection window
- Sending a wire without confirming instructions by phone with a verified number
- Waiving key contingencies without a clear plan for risk
- Assuming a change is valid without a signed amendment
- Not knowing who holds your funds and how to get a receipt
Millard market perspective
In the Omaha metro, many entry-level offers use $1,000 to $5,000 in earnest money. For typical single-family homes, 1 to 2 percent of the purchase price is common. In competitive listings, a higher deposit can strengthen your offer. Your strategy should match current conditions, your financing, and your comfort level with contingencies.
The bottom line
Earnest money is a simple tool with a big impact. A clear amount, fast delivery, and careful attention to contingency deadlines can make your Millard offer stand out while protecting your cash. When handled correctly, your deposit becomes a helpful credit at closing, not a source of stress.
If you want local guidance and a calm, step-by-step process from offer to closing, connect with Emily Lynch for a friendly consult and a plan that fits your budget and timeline.
FAQs
How much earnest money should I offer in Millard?
- Many buyers use $1,000 to $5,000 for entry-level homes or about 1 to 2 percent of the price for typical single-family homes, then adjust for competitiveness and contingencies.
When do I get my earnest money back in Nebraska?
- If you cancel within a valid contingency period and follow the contract’s notice rules, the deposit is typically refundable; if you default without a contractual right, the seller may keep it.
Who holds my earnest money in a Millard purchase?
- Usually a local title or escrow company holds it in a trust account, though a brokerage trust account can be used; your purchase agreement names the escrow holder.
Can a seller keep my earnest money if closing falls through?
- The seller can keep it only if the contract allows it due to buyer default; if you properly exercise a contingency or the seller breaches, you can usually recover it.
Is earnest money the same as a down payment?
- No, it is a deposit that shows good faith; at closing it is credited toward your down payment or closing costs, so it reduces the cash you need to bring.
