Buying a home in Church Hill or anywhere in Hawkins County can move fast. Once your offer is accepted, you’ll be asked to put down earnest money. If you’re wondering how much is typical here, when it’s refundable, and how to protect it, you’re in the right place. You’ll leave this guide with clear numbers, timelines, and simple steps to keep your deposit safe. Let’s dive in.
What earnest money is
Earnest money is a good‑faith deposit you pay after your offer is accepted. It shows the seller you’re serious so they can take the home off the market while you complete inspections and secure financing. It is not your down payment. At closing, your earnest money is usually credited toward your cash to close.
Sellers like earnest money because it provides assurance you intend to move forward. It can compensate the seller if a buyer walks away without a valid reason. For you, a solid deposit can strengthen your offer in a competitive situation. Just remember, larger deposits signal commitment but also increase potential loss if you cancel without a contract‑approved contingency.
Typical amounts in Tri‑Cities
In Northeast Tennessee, including Church Hill and the Tri‑Cities, many earnest deposits fall on the lower end of national ranges because local home prices are often more affordable. You will commonly see:
- For many single‑family homes: about $500 to $2,500.
- In multiple‑offer or higher‑priced situations: $2,000 to $5,000 or more.
- A simple planning rule: about 1% of the purchase price. On a $200,000 home, that’s roughly $2,000.
Your final number should reflect the home’s price, how competitive the property is, and your comfort with risk. Ask your agent to compare recent local offers so your deposit fits current Hawkins County expectations.
When your deposit is refundable
If you cancel under a valid contingency within the deadline and provide proper notice, your earnest money is typically refunded according to the contract. If you cancel after contingencies expire or breach the contract, the seller may keep the deposit or pursue other remedies stated in the agreement.
Common buyer protections
- Inspection contingency. You can inspect the home and either accept, negotiate repairs, or cancel within the inspection window. Around here, 7 to 10 days is common, but the period is negotiable.
- Financing contingency. If you cannot obtain your loan by the agreed date, you can cancel under this clause. Many contracts allow 21 to 30 days for loan commitment, depending on lender and loan type.
- Appraisal contingency. If the appraisal comes in below the purchase price, this protects you. Lenders often order appraisals within 1 to 3 weeks of contract acceptance.
- Title review. You can review the title work and raise objections within the stated period early in the contract.
- Sale‑of‑home contingency. This can be useful, but sellers may be less open to it in competitive situations.
When it’s at risk
Your deposit is at risk if you miss a deadline, cancel without a covered reason, or fail to deliver earnest money on time. Contracts sometimes include a liquidated damages clause that allows the seller to keep the earnest money as the agreed remedy for a buyer breach. The exact outcome depends on your contract language.
A simple contract timeline
Every deal is different, but here is a helpful example to set expectations. Pay close attention to your contract’s exact dates.
- Day 0: Offer accepted. Earnest money typically due within 24 to 72 hours.
- Days 1–10: Inspection period. Complete inspections, request repairs, or cancel within the deadline.
- Days 7–21: Lender processes your application. Work toward loan commitment; request any needed extensions before the deadline.
- Days 7–21: Appraisal ordered and completed. If low, discuss options with your agent and lender.
- Closing: Often 30 to 45 days from acceptance, depending on financing, title work, and scheduling.
If you cancel under a valid contingency within the timeframe and follow the notice requirements in the contract, your earnest money is usually returned by the escrow holder.
Who holds earnest money in Tennessee
In Tennessee, earnest money is commonly deposited with one of the following:
- The listing brokerage’s escrow account.
- A title or escrow company handling the closing.
- An attorney’s trust account.
Your contract will name the escrow holder and when funds are due. Deliver the deposit on time and get a written receipt. Licensed brokers and title companies hold earnest money in separate trust or escrow accounts. If there’s a disagreement over who should receive the funds, the escrow holder follows the contract’s dispute process. Some disputes may require mediation, arbitration, or court action if parties cannot agree.
In Hawkins County, title companies or closing attorneys typically handle escrow and coordinate title searches. The Hawkins County Register of Deeds records the deed at closing once the transaction is complete. Many local purchase agreements use Tennessee Association of REALTORS forms, which include sections on earnest money, contingencies, and dispute resolution.
How to protect your deposit
Pre‑offer moves
- Get a written lender preapproval, not just a prequalification.
- Ask your agent about recent earnest‑money sizes across Church Hill and nearby Tri‑Cities neighborhoods.
- Line up a trusted local inspector so you can schedule quickly.
At contract and during due diligence
- Put the exact deposit amount and the escrow holder in the contract.
- Use clear deadlines for inspections, appraisal, title review, and financing. Specify how notice must be delivered.
- Deliver the funds within the contract’s window and keep the receipt.
- Schedule inspections immediately and submit any repair requests in writing.
- Stay in close contact with your lender to meet the loan‑commitment date. If you need more time, request an extension in writing before the deadline.
If issues arise
- If you cancel under a valid contingency, send written notice by the required method before the deadline. Keep copies.
- If the deposit is withheld after a valid cancellation, review the contract’s dispute steps, contact the escrow holder for an accounting, and consider speaking with a local real estate attorney.
Quick buyer checklist
- Before offering: get preapproved, confirm local earnest‑money norms, decide on a deposit that fits your budget and risk comfort.
- At offer: write the deposit amount and escrow holder into the contract; set clear deadlines and notice instructions.
- After acceptance: deliver funds promptly and get a receipt; schedule inspections; follow all timelines.
- If cancelling: follow notice rules exactly; retain emails, receipts, and inspection reports.
- If there’s a dispute: review the contract provisions; contact the escrow holder; seek legal guidance if needed.
Local guidance you can trust
Buying in Church Hill or anywhere in Hawkins County should feel clear and manageable. With more than 20 years serving the Tri‑Cities and deep local networks, Kristi provides step‑by‑step support that helps you set the right deposit, meet your deadlines, and protect your funds. If you’re planning a first home, a move‑up purchase, or coordinating a family move, reach out for personal guidance from offer to closing. Connect with Kristi Bailey to talk through your plans.
FAQs
How much earnest money do buyers in Church Hill usually put down?
- Many local offers use about $500 to $2,500. For median‑priced homes or competitive situations, $2,000 to $5,000 or more is common. A simple starting point is about 1% of the purchase price.
Is earnest money in Tennessee refundable after a bad inspection?
- Yes if your contract includes an inspection contingency and you cancel or negotiate within the deadline using the required notice method. If you miss the deadline, the protection may not apply.
Who should hold my earnest money in Hawkins County?
- A neutral title or escrow company or a closing attorney is common. Some deposits are held by the listing brokerage. Make sure the escrow holder is named in the contract and always get a receipt.
What happens if my loan is denied before closing?
- If you have a valid financing contingency and provide the required documentation on time, you can usually cancel and receive a refund. The exact outcome depends on the contract language and timelines.
When is earnest money due after my offer is accepted?
- Most contracts require delivery within 24 to 72 hours of acceptance. Late delivery can be considered a default, so plan ahead and confirm how you’ll pay and receive a receipt.
Can the seller keep my deposit and still sell to someone else?
- Depending on the contract’s remedies, the seller may keep the earnest money as liquidated damages or pursue other remedies. Your rights and the seller’s options are defined by the signed agreement.
