Earnest Money for Sandy Springs Home Buyers Explained

Buying in Sandy Springs and hearing you need to put up earnest money? You are not alone. That first wire or check can feel confusing when you are racing to meet deadlines and line up inspections. By the end of this guide, you will know what earnest money is, how much to offer, when it is due, how contingencies protect it, and how to keep it safe in a Georgia contract. Let’s dive in.

What earnest money is

Earnest money is a good-faith deposit you provide after your offer is accepted. It shows the seller you are serious while you work through inspections, appraisal, and financing. The funds sit in escrow and apply to your closing costs or down payment when you close. They are not paid to your agents and are part of your total purchase funds.

In the event of a buyer breach, the contract may allow the seller to keep the deposit as a remedy. The exact outcome depends on the language in your purchase agreement and any addenda you sign.

Who holds it in Georgia

In Georgia, the deposit is typically held by the party named in your contract. Common escrow holders include the listing broker, a title company, the seller’s attorney, or the buyer’s attorney. Many buyers prefer a neutral third party, such as a title company or attorney.

Brokers who hold escrow must follow Georgia Real Estate Commission trust-account rules. Standard Georgia Association of REALTORS (GAR) forms include clear fields for earnest money details, the escrow agent, deadlines, and what happens if either party defaults.

How much to put down in Sandy Springs

Typical deposit amounts vary by price point and competitiveness:

• Entry-level or modest offers: about $500 to $2,000.
• Many single-family purchases: about 1 percent of the price, or a flat $2,500 to $10,000.
• Competitive or higher-priced homes: often 1 to 2 percent or more to stand out.

In Sandy Springs, inventory can be tight in popular neighborhoods. If you are facing multiple offers, a stronger deposit can help your offer rise to the top. The right number depends on price, your financial comfort, what other buyers are offering, and how many contingencies you include.

When your deposit is due

Your contract sets the deadline. GAR-based agreements commonly require delivery within 48 to 72 hours after ratification, though the exact timeline can differ. Confirm the written deadline in your signed contract. If you are wiring funds, allow for bank processing and request a written receipt from the escrow holder.

Contingencies that protect your deposit

Contingencies define when you can cancel and keep your deposit. Your contract spells out the deadlines and notice steps for each.

Inspection contingency

Most Atlanta-area contracts include an inspection period, often 7 to 10 days. You can inspect the home, request repairs or credits, or cancel within that period per the contract’s terms. If you cancel within the inspection window following the required steps, your earnest money is usually refundable.

Financing contingency

Financing timelines often run 21 to 30 days to secure loan approval. If you cannot obtain financing and you meet the contract’s notice requirements by the deadline, your deposit may be refundable. Missing a notice or a date can put your deposit at risk.

Appraisal contingency

If the appraisal comes in below the purchase price, you can negotiate with the seller, bring additional funds, or cancel if the contract allows. Whether your deposit is refundable depends on the appraisal language in your agreement and any negotiated amendments.

Title, survey, and HOA review

Condos and many Sandy Springs homes are part of an HOA. Your contract may provide time to review HOA documents and title exceptions. If you raise valid objections on time per the contract, you may be able to terminate and receive a refund.

When you could forfeit it

You risk losing your deposit if you breach the contract or cancel without a contractual right. For example, if you pass the inspection period without objections and then back out for a non-contract reason, the seller may have a claim to the deposit. Some GAR forms allow the seller to keep the deposit as liquidated damages, while others point to different remedies. The specific remedy depends on the form and any addenda you use.

How disputes get resolved

If the buyer and seller disagree about who should receive the funds, the escrow agent will follow the dispute process in the contract. Options may include holding funds until both parties agree, mediation or arbitration if required in the contract, or a court interpleader action. In practice, many parties negotiate a settlement to avoid the cost and delay of litigation.

Keep your earnest money safe

Use these practical steps to protect your deposit in Sandy Springs:

• Name a neutral escrow holder. Consider a title company or attorney for third-party neutrality.
• Confirm deadlines and method in writing. Note the exact number of days after ratification and acceptable payment forms.
• Get a written receipt. Ask the escrow agent for a dated receipt that shows the amount, payer, and where funds are held.
• Verify the escrow account. Ask whether funds are kept in a trust account and whether they earn interest, and who receives any interest.
• Guard against wire fraud. Always confirm wiring instructions by phone using a known, verified number. Be cautious of any emailed changes.
• Keep thorough records. Save receipts, emails, inspection reports, lender communications, and contract amendments.
• Clarify release instructions. Your contract should state the conditions for disbursement and who must sign to release funds.

Real-world examples

• Typical and refundable: You agree to buy a $450,000 home and deposit $4,500. During a 10-day inspection period, you discover structural issues and cancel within the deadline using the contract’s notice procedure. Your deposit is refunded.
• Competitive offer: You pursue a $650,000 home with multiple offers. You offer $12,000 in earnest money to show strength. You secure financing and close, and the deposit applies to your closing costs.
• Forfeiture risk: You deposit $5,000, finish the inspection period without objections, then decide you no longer want the home for a non-contract reason. The seller may be entitled to the deposit based on the default provisions in your agreement.

Local timelines to expect

Most Sandy Springs transactions follow these general windows, though every contract is unique:

• Inspection period: often 7 to 10 days.
• Loan approval: commonly 21 to 30 days.
• Appraisal steps: often within 7 to 14 days after ordering, subject to contract timing.
• Closing: typically 30 to 45 days from ratification, depending on financing, title, and HOA document turnaround.

Always confirm your written deadlines. If you perform, notify on time, and follow the procedures in your contract, you protect your deposit and keep the transaction moving.

How we help Sandy Springs buyers

Your deposit is a small piece of the price, but it carries real weight in negotiations. Our team helps you size the deposit to your situation, choose a neutral escrow holder, and build the right contingency timeline for the home you want. We also manage contract notices and documentation so your rights and funds stay protected.

You focus on the home. We handle the details, from offer to closing, with the high-touch support and local insight you expect in Sandy Springs.

If you are planning a purchase in Sandy Springs or nearby, connect with the Christine Bradley Team. We will help you structure a competitive offer and safeguard your deposit from day one.

FAQs

What is earnest money in a Georgia home purchase?

• It is a good-faith deposit you place after contract ratification that sits in escrow and applies to your closing funds, with release or refund governed by your contract.

How much earnest money should I offer in Sandy Springs?

• Many buyers offer about 1 percent of the price, with common flat amounts of $2,500 to $10,000, and higher deposits in competitive situations.

When is earnest money due after my offer is accepted?

• Most GAR-based contracts require delivery within a set period such as 48 to 72 hours, but you should follow the exact deadline written in your agreement.

Is my earnest money refundable if the appraisal is low?

• It depends on your appraisal contingency language; you may renegotiate, bring funds, or cancel if allowed, with refundability tied to the contract terms.

Who can hold the earnest money in Georgia?

• The named escrow agent in the contract, commonly the listing broker, a title company, or an attorney; many buyers choose a neutral title company or attorney.

How do I avoid wire fraud when sending my deposit?

• Call a verified number for the escrow holder to confirm instructions, be wary of emailed changes, and request a written receipt once funds are received.