Writing an offer in Cow Hollow and wondering how much earnest money you should put down, and when to send it? You are not alone. In a competitive, design‑driven pocket like Cow Hollow, your deposit signals confidence and can strengthen your offer when it counts. This guide explains how earnest money works in California, typical deposit ranges for Cow Hollow, when funds are due, how refundability ties to contingencies, and how to wire safely. Let’s dive in.
Earnest money basics in California
Earnest money, also called a good‑faith deposit, is your initial deposit that shows seriousness. The funds are held in escrow and credited toward your purchase at closing. In California, escrow or a title company usually holds the deposit under the contract and escrow instructions.
Refundability depends on your contingencies and the timing of removal. While your deposit is in escrow, it is not automatically non‑refundable. As long as you have active contingencies and exercise your rights correctly, you can typically recover the deposit if a contingency is not satisfied. The standard timelines and terms are commonly negotiated using California Association of Realtors forms. You can review general form and process guidance at the California Association of Realtors and escrow background at the California Department of Real Estate.
How much to deposit in Cow Hollow
There is no single rule for deposit size in Cow Hollow. Local expectations shift with market conditions and price tier. Cow Hollow and nearby north‑side neighborhoods attract design‑minded, tech‑forward buyers who often compete for standout homes. When competition rises, sellers tend to favor offers that show stronger commitment, which can include a larger deposit.
Use these practical ranges as a starting point and align them with your comfort level and contingency plan:
- Conservative or calm market: about 1% of the purchase price.
- Market‑normal in competitive conditions: commonly 1–3%.
- Strong or multiple‑offer scenarios: 3–5% to stand out.
- All‑cash or ultra‑competitive tiers: sometimes 5–10% or more, based on buyer comfort and counsel.
The right number depends on how competitive the listing is, your financing status, and how quickly you plan to remove contingencies. A larger deposit can help your offer look stronger, but it also raises the stakes if you remove protections too early.
Quick examples at common price points
- Example A, list price $1,200,000: 1% = $12,000; 2% = $24,000; 3% = $36,000.
- Example B, list price $2,000,000: 2% = $40,000; 4% = $80,000.
Model your cash so you have the deposit ready plus funds for inspections, closing costs, and a cushion.
When your deposit is due
Most offers in California call for delivering the earnest‑money deposit to escrow within 24 to 72 hours after the seller accepts your offer. The exact window is negotiable and should appear in your contract.
You can deliver funds by cashier’s check, personal check if accepted by escrow, or wire transfer. Each method has different timing and risk considerations. If you plan to wire, set up verification steps before you send funds and avoid last‑minute transfers.
Contingencies and typical timelines
Your contingencies protect your deposit while you complete due diligence. Timelines are negotiable, but these windows are often used in California:
- Inspection contingency: typically 7 to 17 calendar days.
- Loan or financing contingency: often 17 to 21 days, aligned with lender milestones.
- Appraisal contingency: can run with financing or as a subset, based on the contract.
Shorter windows can make your offer more attractive in a competitive Cow Hollow setting. Balance any shortened timeline with your lender’s speed and your own readiness to review disclosures, HOA documents, and inspection results.
When your deposit is refundable
As long as your contingencies are in place and you cancel properly within those windows, your deposit is generally refundable. If you remove contingencies and later default, the seller may be entitled to keep some or all of the deposit as damages, depending on your contract. California purchase agreements often include liquidated damages and dispute resolution provisions. The specific language in your agreement and escrow instructions controls how disputes are handled, which can include mediation, arbitration, or litigation.
The takeaway: match your deposit size to your risk tolerance and contingency plan. The stronger the deposit and the faster the contingency schedule, the more you should understand the implications before you sign.
Wire your deposit safely
Wire‑transfer fraud is a real risk in real estate. Criminals often spoof email accounts and send fake wiring instructions just before funds are due. National authorities urge buyers to verify any instructions independently before sending money.
Follow this wire‑safety checklist:
- Treat any change in wiring instructions as suspicious. Never rely on email alone.
- Call your escrow officer using a number you obtain independently, such as from the company’s official website or verified paperwork. Confirm the account name and last four digits before you wire.
- Ask for written instructions on official letterhead and request a secure portal if available.
- Use strong, unique passwords for email accounts and enable two‑factor authentication.
- If timing allows, consider a cashier’s check delivered to escrow to reduce wire exposure.
- If anything seems off, pause and verify. If you suspect fraud, contact your bank, your escrow company, your agent, and law enforcement right away, and file a report with the FBI’s IC3.
For more consumer guidance on avoiding wire fraud, review the Consumer Financial Protection Bureau’s tips and the National Association of Realtors’ consumer advisories.
Build your Cow Hollow deposit strategy
A strong offer is more than a number. It is a clear plan that aligns deposit size, contingencies, and timing with your goals and the market.
Use this quick checklist as you shape your strategy:
- Ask your agent for recent local examples so you understand what won in the past few weeks.
- Choose a deposit size that shows commitment without outpacing your comfort once contingencies are removed.
- Confirm your lender’s timeline and set contingency dates that you can confidently hit.
- Decide how you will deliver funds, and confirm escrow’s identity and wiring protocol before you open escrow.
- Keep clear records, including confirmations and receipts.
Buying in Cow Hollow calls for focus, preparation, and a polished presentation. With thoughtful terms, secure funding steps, and steady guidance, you can compete with confidence.
Ready to craft a winning offer in Cow Hollow or nearby north‑side neighborhoods? Connect with Adelaida Mejia to align your deposit strategy, contingencies, and presentation with current market dynamics.
FAQs
How much earnest money do Cow Hollow buyers usually put down?
- Many buyers use 1–3% in competitive conditions, 3–5% to stand out in multiple offers, and about 1% in calmer moments, depending on price and risk tolerance.
When is earnest money due after my offer is accepted?
- It is commonly due to escrow within 24 to 72 hours after acceptance, but the exact timing is negotiable and appears in your contract.
Is earnest money refundable in California if I cancel due to inspections?
- If your inspection contingency is in place and you cancel properly within the timeline, the deposit is generally refundable under typical California contracts.
What contingencies protect my deposit in San Francisco?
- Typical examples include inspection, loan or financing, and appraisal contingencies, with common windows of about 7–17 and 17–21 days depending on your negotiation.
How do I avoid wire fraud when sending my deposit?
- Verify wiring instructions by phone using a known number, request written instructions on letterhead, use secure portals, and review the FBI IC3 guidance before you send funds.
