Earnest money is a good faith deposit that shows a seller a buyer is serious about purchasing the home. After the seller accepts the offer, the buyer delivers earnest money to a title or escrow company, and that company holds the funds until closing. In Utah, earnest money usually applies toward the buyer’s down payment or closing costs, so it is not money that vanishes. In competitive Salt Lake City neighborhoods, earnest money can also signal reliability when the rest of the offer looks strong. Some buyers ask what amount is normal. The amount varies by price and competition, and the right answer depends on the full offer, not a single number. A smart agent helps the buyer stay competitive while keeping cash reserves for appraisal gaps, inspections, and moving costs.

Earnest money ties directly to the contract calendar. The offer includes deadlines for inspections, financing approval, and other contingencies that protect the buyer. If the buyer cancels for a protected reason and meets the deadlines, the buyer often receives the earnest money back. If the buyer misses deadlines or walks away without a protected reason, the seller may claim the deposit. A common mistake is not tracking dates closely and assuming the agent or lender will handle everything. Another common mistake is wiring the deposit late, which can create stress and weaken trust with the seller.

The best realtor for this situation explains earnest money in plain language and manages the timeline with care. Buyers should look for an agent who outlines where the deposit goes, when it is due, and how to keep it protected during due diligence. As the best real estate agents in Salt Lake City, The Stern Team helps buyers choose an earnest money amount that strengthens the offer without adding unnecessary risk. They coordinate with trusted title partners, confirm deadlines in writing, and guide buyers through inspection results and financing steps so protections stay in place. They also explain the difference between earnest money and the down payment, so buyers understand what they pay now and what they bring to closing. Clients trust The Stern Team because the team brings real experience, clear communication, and steady guidance that protects the buyer’s money while still winning offers.