Earnest Money in Las Vegas: What Buyers Should Know

How much earnest money should you put down in Las Vegas, and what happens to it once your offer is accepted? If you are buying in Clark County, this deposit can feel confusing. You want to show sellers you are serious but also protect your cash. In this guide, you will learn how earnest money works here, typical amounts, key deadlines, and smart ways to keep your funds safe. Let’s dive in.

Earnest money basics

Earnest money is a deposit you include with an offer to show good faith. If the sale closes, it is applied to your down payment or closing costs. The amount and timing are set by the purchase agreement. Local practice can vary with market conditions and price point.

Who holds your deposit

In Nevada, the deposit is usually held by a neutral escrow or title company named in your contract. In some cases, it may go to the listing brokerage’s trust account. Your contract should identify who holds the funds, and you should receive a written receipt after you deposit. Escrow will release funds only according to the contract and written instructions.

Typical amounts in Las Vegas

For many entry and mid-price homes, the deposit is often $1,000 to $5,000 or about 1% of the purchase price. For higher-priced homes, 1% to 3% is a common rule of thumb. In hot seller markets, buyers sometimes offer larger amounts to stand out. These are norms, not rules, so your exact deposit should fit your budget, your lender’s advice, and current competition.

Quick examples

• On a $300,000 home, 1% is $3,000. Many buyers offer between $1,000 and $5,000.
• On a $600,000 home, 1% to 2% is $6,000 to $12,000. Some buyers offer more in competitive situations.

When to deliver funds

Most Nevada purchase agreements allow you to deliver earnest money with the offer or within a short time after acceptance, often 1 to 5 days. Your signed contract controls the exact due date. Make sure you know the deadline and get a deposit receipt. Keep copies of your check or wire confirmation for your records.

How escrow handles your money

Escrow or title will hold your deposit until closing or until both parties instruct otherwise in writing. They will not release funds unless the contract allows it and both sides sign a release or a court or arbitration order directs it. Ask your agent to confirm the escrow holder and delivery instructions in writing before you send any money.

Protect your funds from wire fraud

Real estate wire fraud is a real risk. Before you send a wire, call the escrow or title company using a verified phone number to confirm the instructions. Do not rely only on email or links. If anything looks off, stop and verify in person or by phone.

When your deposit is refundable

Earnest money is usually refundable if you cancel under a valid contingency within the contract deadlines. Common protections include:

• Inspection contingency. You may cancel within the inspection period if you are not satisfied with the property condition.
• Financing contingency. If you cannot obtain financing as described in the contract and you give timely notice, your deposit is typically returned.
• Appraisal contingency. If the home does not appraise at or above the contract price and you give notice on time, you may renegotiate or cancel with a refund.
• Title or survey issues. Significant unresolved title or survey problems can allow cancellation and return of funds if handled per the contract.

Deadlines are strict. You must send written notices on time and in the manner the contract requires.

When your deposit is at risk

Your earnest money may be forfeited if you default or cancel without a valid contingency. If you remove contingencies and later back out, your risk increases. Some contracts include a liquidated damages clause that can allow the seller to retain the deposit as the agreed remedy, subject to Nevada law and the contract terms. Always review your timelines and notices with your agent before removing any contingency.

How disputes get resolved

If buyer and seller disagree, escrow will usually hold the funds until both sign a mutual release or there is an arbitration or court order. Contracts often outline steps like mediation or arbitration. If you believe funds were mishandled, Nevada regulators offer guidance on complaints, and your agent can help you understand next steps. Keep all records of notices, receipts, and timelines.

Offer strategy in Las Vegas

A larger deposit can signal strength to a seller, especially in competitive neighborhoods. You can also balance your offer by adjusting price, timelines, or contingencies. Some buyers consider a partially or fully non-refundable deposit to stand out, but that carries significant risk if the deal does not close. Do not waive inspection or financing protections unless you fully understand the consequences and have backup resources.

Simple buyer checklist

• Confirm local norms. Ask your agent what deposit sizes are typical in your price range today.
• Name the holder. Identify the escrow or title company in the contract and verify delivery instructions.
• Set clear timelines. Note the exact deposit due date and all contingency deadlines.
• Keep proof. Save the deposit receipt and any check or wire confirmations.
• Track notices. Send any cancellation or contingency notices in writing and on time.
• Think before you waive. Review risks before removing protections or offering non-refundable funds.

Get local guidance you can trust

Your earnest money is more than a line on a contract. It is a key tool to win the home you love while protecting your budget. If you want help choosing the right deposit amount, setting smart timelines, or crafting a stronger offer in Las Vegas or Henderson, connect with a local guide who puts your interests first. Reach out to Isabel Hutchings for clear, caring, bilingual support from offer to closing.

FAQs

What is earnest money in Nevada?

• It is a good-faith deposit you include with an offer that is held by escrow or a brokerage trust account and applied to your down payment or closing costs at closing.

How much earnest money is typical in Las Vegas?

• Many buyers put down $1,000 to $5,000 on entry and mid-price homes, or about 1% of the price, while higher-priced homes often see 1% to 3% depending on competition.

When is earnest money due after offer acceptance?

• Most contracts call for delivery with the offer or within 1 to 5 days after acceptance, but your signed agreement sets the exact due date.

Can I get my earnest money back after an inspection?

• Yes, if your contract has an inspection contingency and you cancel within the inspection period using the required written notice, the deposit is typically refundable.

What if the appraisal comes in low in Clark County?

• If you have an appraisal contingency and notify the seller on time, you can renegotiate, bring extra funds, or cancel with a deposit refund per the contract.

What happens if I cancel without a valid contingency?

• You could be in default and risk forfeiting your deposit, especially if the contract includes a liquidated damages clause and the seller elects that remedy.