How Much Earnest Money Do You Need in Arizona? And When Do You Get It Back?

The short answer: There's no set amount. Earnest money is negotiable, and the right number depends on the price and how much competition there is for that home. It's held by the escrow company, not the seller, and it's credited toward your down payment and closing costs at closing. Cancel within your contingencies and you get it back.

What you'll learn:

• What earnest money is and why sellers ask for it
• How to decide on an amount for each offer
• Who holds it, and how to send it safely
• The Arizona deadlines that protect it, and how buyers lose it

Earnest money makes buyers nervous because it's real money leaving your account before you own anything. Once you see how it's protected in an Arizona contract, it gets a lot less scary. Here's how it works.

What is earnest money?

Earnest money is a good-faith deposit that shows the seller you're serious. You send it right after your offer is accepted. It isn't an extra cost. At closing, it's credited toward your down payment and closing costs.

Think about it from the seller's side. When they accept your offer, they take their home off the market and turn away other buyers. Your earnest money is their assurance that you'll follow through, or that you'll exit the contract the way the contract allows.

How much earnest money is normal in Arizona?

No law sets the amount, and you'll find plenty of rules of thumb online. I don't use one. Instead, I recommend a number for each offer based on two things: the price, and how much competition there is for that specific home.

When does it make sense to offer more? When other buyers are circling and you're confident in the home. A bigger deposit tells the seller you're committed, and it doesn't cost you anything extra, since it's credited back to you at closing. It only arrives earlier.

When does it make sense to offer less? On a home that's been sitting, which is more common right now: Redfin's Gilbert data, pulled in October 2026, shows 37.5% of homes with a price drop. In a market that leans toward buyers, the strength of your offer often comes from your terms and your financing more than the size of your deposit.

Where is earnest money held?

With the escrow company, which in Arizona is usually part of a title company. It sits in a neutral escrow account until closing. Not with the seller, and not with either agent.

You'll send it by wire or check right after acceptance. Before you wire anything, call your escrow officer at a number you got from me or the title company's website, never from an email. I will never send you wiring instructions by email. Wire fraud targets homebuyers at exactly this moment.

Do you get earnest money back in Arizona?

Yes, when you cancel properly under one of the contract's protections. Under the standard Arizona REALTORS contract, the main ones are:

The inspection period. By default you have 10 calendar days after acceptance to inspect and review disclosures. If you cancel with a BINSR inside that window and list the items you disapprove, your earnest money comes back. Here's how the BINSR works.

Disclosures and title. The seller delivers the SPDS within 3 days and a 5-year insurance claims history within 5 days. You also get the title commitment. You can object to items in them during your inspection period, or within 5 days of receiving them, whichever is later.

The appraisal contingency. If you're financing and the home appraises below the price, you have 5 days after notice of the appraised value to cancel and get your earnest money back.

The loan contingency. If you can't get final loan approval after a good-faith effort, you can cancel and get your earnest money back. You have to give that notice no later than 3 days before closing, so we watch your lender's progress the whole way.

Each of these depends on deadlines and written notice. The details matter, so I track every date for my buyers and tell you exactly what's coming up and when.

When can a buyer lose earnest money?

When a buyer backs out outside the contract's protections, or misses a deadline. For example:

Your inspection period ends, you didn't send a BINSR, and two weeks later you decide you don't want the house.

Your loan falls apart, but nobody gave the seller notice before the 3-day deadline before closing.

You don't deliver required items, like finishing your loan application within 3 days of acceptance, or your lender's Loan Status Update within 10 days, and then don't fix it after the seller sends a cure notice.

The pattern: earnest money is rarely lost by surprise. It's lost when a deadline slips. That's one of the most valuable parts of having someone on your side who sends you the timeline right away and keeps you ahead of every date.

Is earnest money different on new construction?

Often, yes. New builds in places like Eastmark in Mesa, or the newer communities in Queen Creek and San Tan Valley, are usually sold on the builder's own purchase contract, not the Arizona REALTORS contract. The deposit amount, when it's due, and whether it's refundable are set by the builder, and builder deposits can become non-refundable early, especially once you've picked upgrades.

That doesn't make new construction a bad idea. It means you read the builder's contract closely before you sign, ask exactly when your deposit stops being refundable, and bring your own agent to your first visit to the sales office.

My take

Put down an amount that fits the competition for that home, send it carefully, and then let the contract protect you. If you're unsure about a home, the inspection period is your window to decide. Use it. And when you're planning your budget, earnest money is part of your total cash to close, not on top of it.

Sources: Deadlines: Arizona REALTORS Residential Resale Real Estate Purchase Contract (10-day inspection period; SPDS 3 days; claims history 5 days; title and disclosure objections 5 days; appraisal 5 days after notice; loan contingency notice 3 days before closing; loan application 3 days; LSU 10 days). Price-drop share: Redfin, Gilbert, AZ city housing market page, pulled October 2026; based on information from Redfin, compiled from Multiple Listing Service data. Information has not been verified and is not guaranteed.

Deadlines here are the defaults in the standard Arizona REALTORS resale contract, and your contract can change them. Builder contracts follow their own terms. Confirm your dates with your agent and escrow officer, and take legal questions to an attorney. This is general information, not legal advice.

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Planning a move in the East Valley? Tell me what you're looking for, buying or selling, and I'll get back to you myself. Work with me.

Dana Massey · Compass · dana@danamassey.com · 480-818-7554