How Much Earnest Money Do You Need to Buy a Home in San Diego?

by Trevor Landress

Earnest money is a good faith deposit you put into escrow after a seller accepts your offer, and many explainers put it at about 1% to 2% of the price. On a $1,000,000 San Diego home, that is $10,000 to $20,000. It is not an extra fee. It is your skin in the game, and if you protect it with your contingencies, it is a safe step on the way to the closing table.

The short answer

Typical earnest money runs about 1% to 2% of the price, and it can be higher when several buyers are competing.
The deposit goes into escrow, which is a neutral account, not into the seller's pocket.
At closing it is applied toward your purchase.
Your EMD may be at risk if you cancel for a reason your contract does not protect.
Always confirm wire instructions with escrow before you send a single dollar.

What earnest money is and where it goes

When a seller accepts your offer, your contract asks you to deposit money to show you are serious. The money goes to an escrow company, which holds it for both sides. Think of escrow as a neutral referee. The seller does not get the money yet, and you do not get to take it back whenever you like. Your contract sets the deadline for the deposit, so ask your agent to put that date on your calendar.

If the sale closes, the deposit counts toward your costs. It is part of your money for the purchase, not an extra charge. If you are still working out your savings plan, my guides to your down payment and closing costs show the other big pieces.

How much earnest money should you offer?

A FOX Local money explainer puts a typical deposit at 1% to 2% of the price, and says buyers who face competition sometimes go to 4% or 5% to make an offer look stronger. Here is what 1% to 3% looks like on a few San Diego price points:

Home price	1% deposit	2% deposit	3% deposit
$800,000	$8,000	$16,000	$24,000
$1,000,000	$10,000	$20,000	$30,000
$1,200,000	$12,000	$24,000	$36,000

A bigger deposit tells the seller you are committed. But more is not always better. The more you put in, the more you have at stake if something goes sideways, so bigger deposits make the most sense when your contingencies are still in place.

When can your earnest money be at risk?

Your deposit is protected while you are inside your contingency periods and use them the way the contract says. For example, you can cancel because of an inspection problem, a low appraisal or a loan that falls through, if those contingencies are still active. I walk through each one in my guide to home buying contingencies.

You are at risk if you cancel after you have removed your contingencies, or for a reason the contract does not cover. You could also put it at risk by missing a deadline. Your contract spells out what happens to the deposit in those cases. Read that section before you sign, and ask your agent or an attorney if anything is unclear.

Earnest money in a competitive San Diego market

Redfin reported that 36.1% of San Diego County sales closed above asking in July 2026, and the typical home went pending in 29 days. In that kind of market, a stronger deposit is one of several ways to stand out. Price, timing and clean terms matter too, and I cover the full list in my guide to winning a multiple offer situation.

Protect your deposit from wire fraud

Scammers target buyers in the days before closing, and the CFPB warns about it on its homebuyer site. They can copy a real email thread and send fake wire instructions. A few habits keep you safe:

Before you wire money, call the escrow officer at a phone number you already trust.
Treat any last-minute change to wire instructions as a red flag.
Do not click links or open attachments in unexpected messages about your transaction.
Keep your receipt or confirmation, and ask escrow to confirm they got the funds.

This is not a guarantee

The percentages above are common ranges, not rules. The amount, the deadline and what happens to the deposit are set by your contract and the seller's terms. Prices and conditions change, and no range fits every deal. I am a REALTOR, not an attorney, so ask a lawyer about any legal question on your deposit.

My advice for San Diego buyers

Plan for 1% to 2% of the price in your savings, and a little more if the home is in demand.
Know your deposit deadline and keep your funds easy to reach.
Keep your contingencies in place unless you have a plan for the risk.
Verify wire instructions by phone every time.
Ask your agent to explain the deposit section of your contract before you sign.

Call or text me at (619) 402-4614 or send me a message.

Call or text (619) 402-4614 Contact Trevor Landress

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Frequently asked questions

How much earnest money do I need to buy a home in San Diego?

A common range is 1% to 2% of the price, which is $10,000 to $20,000 on a $1,000,000 home. It can be higher when several buyers are competing.

Do I get my earnest money back?

If the sale closes, it is applied toward your purchase. If you cancel inside a contingency period and follow your contract, you can usually get it back. Your contract has the final say.

Is earnest money the same as a down payment?

No. Earnest money is a deposit made early to show you are serious. If the sale closes, it counts toward your total cash for the purchase, which includes your down payment and closing costs.

Who holds the earnest money?

An escrow company holds it as a neutral third party until closing or until the deal ends.

About the author

Trevor Landress is a San Diego REALTOR® with Coldwell Banker West (DRE# 02126901). He was born and raised in San Diego and has been licensed since 2021.

Trevor helps homeowners sell, guides first-time buyers through the home buying process and assists investors with their next acquisition. His work includes negotiating offers, analyzing market trends, building pricing strategies and running marketing campaigns for his listings.

He serves clients across San Diego County, from coastal communities like La Jolla, Del Mar and Carlsbad to neighborhoods inland.

Trevor is part of the Campbell Group, a three-generation real estate team, and he and the Campbell Group consistently rank as a top producing team at Coldwell Banker West each month. He writes these guides to help San Diego buyers and sellers navigate an ever-changing market.

How I help San Diego home buyers

I guide buyers through the home buying process, from getting ready to make an offer to negotiating terms and reaching the closing table.

How I help San Diego home sellers

I help sellers set a price, prepare and market their home, and work through offers and negotiations to closing.

To talk through your plans, call or text (619) 402-4614 or contact Trevor Landress.

Sources

This guide is general information for San Diego home buyers. It is not legal, tax, lending or financial advice. I am a REALTOR, not an attorney, tax advisor, insurance agent or lender, so please check the details of your own situation with the right professional.