Writing an offer on a home in Peoria? You will be asked to put down earnest money, and the amount and timing can affect whether your offer stands out and how safe your deposit is. It is normal to have questions, especially if you are buying in Greater Phoenix for the first time or from out of state. In this guide, you will learn typical amounts in Peoria, when the deposit is due, who holds it, when it is refundable, and how to protect it from risks like missed deadlines or wire fraud. Let’s dive in.
What earnest money is
Earnest money is a deposit that shows a seller you are serious about buying. It signals commitment and gives the seller some protection if you default. If you close, the deposit is credited to you on the final settlement.
You typically pay by wire, cashier’s check, or personal check. In the Phoenix and Peoria market, your deposit is usually placed with the title or escrow company named in the contract and held there until closing or cancellation according to the contract.
How much is typical in Peoria
There is no fixed rule for the amount. Local practice in Peoria and Greater Phoenix varies with price point and market conditions.
- In slower or lower-priced situations, flat deposits of about $500 to $2,000 are common.
- In many standard offers, you will see about $1,000 to $5,000 or roughly about 1 percent of the purchase price.
- In competitive situations, buyers often offer 2 to 3 percent to show stronger commitment.
- On higher-priced or cash offers, some buyers put down 5 to 10 percent or more.
Amounts vary because supply and demand change, buyers use larger deposits to stand out, and price points differ. Lenders usually do not set the deposit amount, but financing and appraisal contingencies affect your risk if you later cancel.
When your deposit is due
The signed purchase contract controls the deadline. In the Phoenix and Peoria area, a common practice is delivery to the named title or escrow company within 24 to 72 hours after both parties accept the offer. Your exact deadline can be different, so read the executed contract closely.
You can deliver by wire or cashier’s check. Build in time for bank processing. Ask the escrow company for written confirmation that the funds were received and have cleared.
Who holds the money
Most Peoria transactions name a title or escrow company to hold the funds in a neutral escrow account. Less often, a broker’s trust account may be specified. The contract states who will hold the deposit, so make sure that section is complete and accurate.
If you are the seller, it is wise to confirm that the funds are received and cleared before making decisions based on buyer performance.
When it is refundable
Earnest money is usually refundable while your contingencies are active and you follow the contract’s notice steps and timelines. If you cancel within a valid contingency period and provide the required notice before the deadline, you typically receive your deposit back.
Common contingencies include:
- Inspection rights and repair or cancellation by the stated deadline
- Financing approval per the contract terms
- Appraisal at or above the purchase price if included
- Title and encumbrance review
- Homeowners association document review when applicable
The key is timing and notice. If you cancel for a covered reason and notify on time per the contract, your funds are generally protected.
When your deposit is at risk
Your deposit becomes at risk if you remove contingencies or miss deadlines and later default without a valid contract reason to cancel. After you remove contingencies in writing, the deposit is often nonrefundable except for other contract remedies such as seller default.
Arizona’s standard forms often allow the seller to retain earnest money as liquidated damages if the buyer defaults, depending on which remedy option is selected in the contract. Always review which remedy was chosen before signing an offer.
If there is a dispute about who is entitled to the funds, common outcomes include a mutual release signed by both parties, mediation or arbitration if required by the contract, an interpleader action by the escrow company, or court litigation. Escrow holders typically need written instructions from both sides or a legal directive to release funds.
How your deposit is used at closing
If the transaction closes, your earnest money is credited to you on the final settlement statement. It usually applies toward your down payment and closing costs.
Buyer checklist for Peoria offers
Use this quick checklist to guide your next steps:
- Decide the amount strategically. In a balanced market, about 1 percent or $1,000 to $5,000 is common. In a hot listing, consider 2 to 3 percent if you are comfortable with the added risk once contingencies are removed.
- Read the deadlines. Confirm the exact due date for the deposit, plus inspection, financing, appraisal, title, and HOA review timelines.
- Deliver to the named escrow holder. Send the funds to the title or escrow company listed in the contract and get written confirmation of receipt and clearance.
- Use wire safety habits. Verify wiring instructions by phone using a trusted number from the title company’s website or a known invoice. Do not rely on email-only instructions.
- Keep records. Save proof of deposit, the pages showing earnest money terms, and any contingency removal notices.
Seller checklist before accepting
Sellers can protect timelines and expectations by confirming a few details up front:
- Confirm the deposit was received and cleared before relying on buyer performance.
- Know which default remedy was selected in the contract so you understand your options.
- Keep copies of the executed offer, including the deposit amount, escrow holder’s contact details, and all deadline pages.
- If an offer proposes an unusual escrow holder or nonstandard disbursement terms, ask for clarification before accepting.
Timing tips and wire-fraud safety
Time is tight once a Peoria offer is accepted. If you plan to wire funds, your bank may have limits and verification steps. Start early and build in a cushion so you can meet a 24 to 72 hour delivery window.
Wire fraud is a real risk in real estate. Protect yourself by verifying wiring instructions directly with the title or escrow company using a known, trusted phone number. Do not click on links or call numbers from unexpected emails. Confirm the account number and beneficiary name before sending funds, and reconfirm if anything looks off.
HOA and local market considerations
Many Peoria homes are in communities with homeowners associations. If your purchase includes an HOA, the contract will set a time frame for reviewing the HOA documents. That review period is a contingency and can affect when you remove contingencies and when your deposit becomes at risk.
Local market conditions also shape expectations. In a tight Phoenix–metro market that includes Peoria, sellers often expect a stronger deposit and fast delivery. In slower periods, smaller deposits are more common. Work with a local team that closes in Peoria regularly so you understand current norms.
Quick contract review list
Before you sign, verify these items in your Peoria purchase contract:
- Exact earnest money amount written in numbers and words
- Name and contact info for the title or escrow company, or broker trust account
- Delivery deadline for earnest money and allowed payment method
- Inspection, financing, appraisal, title, and HOA deadlines and how to cancel if needed
- Seller’s remedy for buyer default, including any liquidated damages clause
- Dispute resolution clause, such as mediation or arbitration
- How the deposit will be applied at closing
Work with a local guide
Earnest money is simple on the surface, but your risk depends on the exact contract language and your timing. A local advisor can help you set the right amount for today’s Peoria market, meet delivery deadlines, and protect your deposit through inspection, financing, appraisal, title, and HOA milestones.
If you want a clear plan for your next offer, schedule a quick call. You will get practical guidance rooted in Greater Phoenix experience and transaction-ready steps tailored to your goals. When you are ready, connect with Gabriel Santellano to schedule a consultation.
FAQs
How much earnest money do buyers typically put down in Peoria, AZ?
- Many offers use about $1,000 to $5,000 or roughly 1 percent of the price, with 2 to 3 percent common in competitive situations.
When is earnest money due after an offer is accepted in Arizona?
- The contract controls, but a common local practice is delivery to the escrow company within 24 to 72 hours of acceptance.
Is earnest money refundable if a home does not appraise in Arizona?
- If your contract includes an appraisal contingency and you follow notice requirements on time, the deposit is generally refundable.
Can I lose earnest money if my financing falls through in Peoria?
- If you have a valid financing contingency and cancel per the contract and deadlines, your deposit is usually refundable; without one, you may be at risk.
Who holds earnest money in Peoria transactions?
- Typically the title or escrow company named in the contract, though a broker trust account may be used if specified.
How is earnest money applied at closing in Arizona?
- It is credited to you on the settlement statement, usually toward your down payment and closing costs.
What happens if the buyer and seller disagree about earnest money in Peoria?
- Common paths include a mutual release, mediation or arbitration if required by the contract, an escrow interpleader, or court litigation.
