Earnest money is one of the first financial commitments a Spokane homebuyer makes after an offer is accepted. Most buyers know they need to pay it. Fewer know exactly how much is expected, where it goes, and under what conditions they can get it back. Here is the complete answer for Spokane buyers in 2026.
What Earnest Money Is
Earnest money is a good faith deposit that shows the seller a buyer is serious about purchasing the property. It is paid shortly after Mutual Acceptance and held in a regulated trust account by a licensed escrow or title company in Spokane. It is not paid directly to the seller.
- Earnest money is not an additional fee. It is credited toward the buyer's down payment and closing costs at closing.
- Earnest money is held by a neutral third party such as Spokane County Title, not by the seller or either agent.
- Under Washington state contract law, earnest money is typically due within 2 business days of Mutual Acceptance.
How Much Earnest Money Is Expected in Spokane, WA
Earnest money in Spokane typically falls between 1 and 3 percent of the purchase price. In competitive situations, buyers sometimes offer more to strengthen their offer.
- On a $369,000 Spokane home, 1 percent earnest money is $3,690 and 3 percent is $11,070
- On a $458,645 Spokane Valley home, 1 percent is $4,586 and 3 percent is $13,759
- In Washington state, a seller cannot legally keep more than 5 percent of the purchase price as liquidated damages if a buyer defaults
- Offering more than 5 percent does not strengthen an offer in Washington because the legal cap makes the excess unenforceable
- In Spokane's current market with 2.8 to 3.3 months of supply, a 1 to 2 percent earnest money deposit is standard for most price ranges
Is Earnest Money Refundable in Washington State?
The answer depends on whether the buyer cancels inside or outside a valid contract contingency.
Earnest money IS refundable when:
- The buyer cancels during the inspection contingency period after following the written notice procedures in the contract
- The buyer's financing is denied despite good-faith efforts and the financing contingency is properly exercised within the deadline
- The home appraises below the purchase price and the buyer exercises the appraisal contingency within the allowed window
- The seller cannot deliver clear title and the title contingency applies
Earnest money is NOT refundable when:
- The buyer backs out for a reason not covered by any active contingency in the contract
- The buyer misses a contingency deadline and the window closes without proper written notice
- The buyer defaults on the contract terms without a valid legal basis
A Real Spokane Example
A buyer makes an offer on a North Spokane home near Francis Avenue for $340,000 with $5,000 in earnest money. During the 10-day inspection period, the inspector finds a Federal Pacific electrical panel and significant crawl space moisture. The buyer submits written notice to terminate within the inspection window. The $5,000 earnest money is returned in full. If the same buyer had waited until after the inspection window closed to terminate, the seller would have had grounds to keep the $5,000.
🌟 How Emiley and Zech Protect Spokane Buyers
- They advise every Spokane buyer on the right earnest money amount based on the specific property, neighborhood, and current market conditions
- They track every contingency deadline so no window closes without the buyer's knowledge
- They confirm all earnest money wire instructions directly with the escrow officer before any funds are sent
- The first conversation with Emiley and Zech is always free
Reach out to Emiley and Zech at Rios and Co Real Estate before you make an offer in Spokane.
Rios and Co Real Estate · eXp Realty · Spokane, WA
