How much earnest money do I need when buying a home in California?

On a $600,000 Inland Empire home, a typical earnest money deposit runs about $6,000 to $18,000, or 1 to 3 percent of the price, with competitive markets favoring the higher end or more. Under the standard California purchase agreement, the deposit is due within about three business days of acceptance and is held by a licensed escrow company, never by the seller directly. The deposit is generally fully refundable if the buyer cancels in good faith while contingencies are active, usually the inspection, appraisal, and loan periods that run about 17 to 21 days. Once contingencies are removed and the buyer later defaults, the seller may keep the deposit, but California law caps automatic forfeiture at 3 percent of the purchase price unless the seller proves larger actual damages. A larger deposit signals seriousness in a multiple-offer situation, so it is a strategic lever, not just a formality. Julian Cesar advises on the right deposit size for each offer and protects the deposit with properly managed contingencies and deadlines.