Buying or selling a home in Marietta and wondering how earnest money really works? You are not alone. That deposit can feel like a big step, and the rules and timelines can be confusing. In a few minutes, you will understand what earnest money is, how much is typical in Cobb County, who holds it, when it is refundable, and how to protect it with the right contingencies. Let’s dive in.

Earnest money basics

Earnest money is a good‑faith deposit you place when your offer is accepted. It shows the seller you are serious about closing. The funds sit in escrow until closing or until the contract is resolved. If the sale closes, your deposit is credited to your down payment or closing costs.

The amount, deadlines, and escrow holder are written into your purchase contract. Your agent will walk you through those terms before you sign.

Who holds the funds in Georgia

In Georgia and around Marietta, earnest money is typically held in one of three places:

• The listing broker’s trust account
• The buyer’s broker’s trust account
• A title or settlement company’s escrow account

The contract will name the holder and how to deliver the deposit. Georgia brokerage rules require that client funds be kept in proper trust accounts.

Typical amounts in Marietta

There is no one-size number, but here is what buyers and sellers commonly see:

• Many buyers offer about 1% to 2% of the purchase price.
• In more competitive situations, deposits can rise toward 1% to 3%.
• In slower segments or at higher price points, some sellers accept flat deposits such as $1,000 to $5,000.

Local demand, price tier, and seller preferences drive the amount. Your agent will help you tailor the deposit to the property and competition.

Hypothetical examples

• Starter home at $325,000: A $3,250 deposit (about 1%) is common and shows strength.
• Move‑up home at $650,000: You might offer $6,500 (1%) or $10,000 (about 1.5%) depending on competition.
• Multiple offers: Buyers sometimes increase to 2% to 3% to stand out.

When you pay and how

Most Metro‑Atlanta contracts require you to deliver earnest money within 24 to 72 hours after both parties sign. You will see the exact timing in your contract.

Common payment methods include personal check, certified funds, or wire transfer to the named escrow holder. Always verify wiring instructions directly with the company before sending funds to avoid fraud.

How it is used at closing

If the transaction closes, your escrowed deposit is credited toward your funds to close. That means it reduces the cash you bring for your down payment and closing costs.

Contingencies that protect your deposit

Contingencies give you time to confirm the property, your loan, and title. If you cancel within an allowed contingency window, you typically receive your deposit back per the contract.

Key contingencies and common Metro‑Atlanta timelines include:

• Inspection contingency: Usually 5 to 10 days to inspect and request repairs or cancel based on findings.
• Financing/loan approval: Often 21 to 30 days to secure lender approval. The appraisal usually occurs during this window.
• Appraisal contingency: If the appraisal comes in low, you can negotiate, bring extra cash, or cancel if you cannot reach agreement within the deadline.
• Title and HOA review: Commonly 3 to 10 days to review title, HOA documents, and raise objections.
• Sale‑of‑home contingency: Less common in competitive areas, but available with clear timelines.

Your Georgia purchase contract controls the exact deadlines and what happens if dates are missed. Mark every date on a shared timeline with your agent and lender.

If the deal changes

You usually receive a refund of your earnest money when you terminate under a valid contingency within the allowed time. Mutual written agreement to cancel also returns funds per the contract.

You may forfeit some or all of your deposit if you walk away without a contractual right after contingencies expire or otherwise default. If the seller defaults, you may seek remedies and would not forfeit your deposit to the seller.

Disputes and release of funds

If there is a dispute, the escrow holder typically keeps the funds until there is a mutual written release or a contract clause directs disbursement. If the parties cannot agree, the escrow holder may hold the funds until the dispute is resolved, including options like an interpleader action.

Best practice: document all notices and deadlines. Keep inspection reports, repair requests, lender updates, appraisal results, and any responses in writing.

Tips for Marietta buyers

• Ask about typical deposits in your target neighborhood and price band. Marietta’s historic core, areas near Kennesaw Mountain, and subdivisions across East and West Cobb can differ.
• Use key contingencies to protect your deposit, especially inspection and financing.
• Fund on time. Deliver the deposit within 24 to 72 hours per the contract.
• Verify wiring in writing with the escrow holder before sending money.
• If you are uncomfortable with a large deposit, balance your offer with other strong terms, like a shorter inspection window or flexible closing.

Tips for Marietta sellers

• Look beyond the deposit amount. Weigh the buyer’s financing strength, contingency lengths, and closing timeline.
• In competitive situations, consider requesting a higher percentage or faster deadlines to reduce your risk.
• Confirm the named escrow holder and deposit delivery method in the offer.

Sample timelines (hypothetical)

• Scenario 1: You offer on a $425,000 home with a 1% deposit ($4,250). Earnest money is due in 48 hours to the title company. You have 7 days for inspection, 25 days for loan approval and appraisal, and plan to close in 35 days. After inspection, the seller agrees to repairs and you proceed. Your $4,250 is credited to your down payment at closing.
• Scenario 2: You compete for a $600,000 home. You offer a 1.5% deposit ($9,000), a 5‑day inspection, and a 21‑day loan approval period to strengthen your position. If the appraisal comes in low and the seller will not adjust, you can cancel within your appraisal window and receive your deposit back per the contract.

Strengthen your offer safely

You can signal commitment without taking unnecessary risk. Consider these options with your agent:

• Increase earnest money proportionally while keeping solid contingency windows.
• Keep the deposit moderate but shorten the inspection period if you are confident.
• If you must sell first, write a clear sale contingency and prepare strong evidence of your current home’s marketability.

Work with a local guide

Your earnest money should work for you, not against you. With organized timelines, clear communication, and a smart plan for contingencies, you can compete with confidence in Marietta. If you want a tailored strategy that fits your goals, reach out to Shawn Nixon and the Ivan Savant Team for boutique, hands‑on guidance across Cobb County and Metro‑Atlanta.

FAQs

What happens to earnest money after my offer is accepted?

• It is deposited into a named escrow account and held until closing or until the contract is terminated according to its terms.

How much earnest money should I offer in Marietta?

• Many buyers offer about 1% to 2% of the price, with 1% to 3% in competitive situations or flat amounts like $1,000 to $5,000 in some cases.

What deadlines protect my deposit in Metro‑Atlanta contracts?

• Common windows include 5 to 10 days for inspection, 21 to 30 days for financing and appraisal, and 3 to 10 days for title or HOA review.

Who holds my deposit and how do I pay it?

• The listing broker, buyer’s broker, or a title company typically holds it; payment is by check or wire within 24 to 72 hours as stated in your contract.

When is earnest money refundable vs. forfeited?

• It is usually refunded if you cancel within a valid contingency period; it may be forfeited if you default or cancel without a contractual right after contingencies expire.

Can I increase my earnest money after going under contract?

• Yes, buyers sometimes increase deposits after acceptance to strengthen their position during negotiations, but only by written agreement.

How is earnest money applied at closing?

• It is credited toward your funds to close, reducing what you need to bring for your down payment and closing costs.

What if there is a dispute about releasing the funds?

• The escrow holder will follow the contract, which may require mutual written release or another process; funds are held until resolution.