Earnest money is basically your way of showing sellers you're serious about buying their home in Fort Mill, Waxhaw, or anywhere in the Charlotte metro area. It's not extra money on top of your down payment – it gets credited toward your down payment or closing costs at closing. Typically, earnest money runs 1-3% of the purchase price, but in competitive markets like Ballantyne or Weddington, you might need to go higher to make your offer stand out. On a $400K home, that's $4K-12K, which isn't pocket change

The exact amount often depends on local customs and how competitive the situation is. In hot markets where homes in Indian Land or Marvin are getting multiple offers, a larger earnest money deposit can help your offer stand out. It shows the seller you've got skin in the game and aren't likely to walk away frivolously. However, make sure you understand the contingencies in your contract – you should be able to get your earnest money back if the inspection reveals major issues, the appraisal comes in low, or you can't get financing

Here's the key: earnest money goes into an escrow account, usually held by the listing agent's brokerage or an attorney. Make sure you understand exactly when and how you can get it back if the deal falls through. In North Carolina, we use attorneys for closings, so often the earnest money goes to the closing attorney. Don't put up more than you can afford to lose, but don't be so conservative that your offer gets rejected. Your agent should guide you on what's appropriate for the specific situation and area where you're buying, whether that's Pineville, Fort Mill, or anywhere else in our market.