# Earnest Money

*Real Estate — Finicade finance glossary*

Earnest money is the deposit a buyer puts into escrow to show they're serious, typically 1–3% of the price, credited towards the purchase at closing. Whether you get it back if you walk depends entirely on your contingencies: within an inspection or financing contingency it's refundable, and outside one it usually isn't. Waiving contingencies to win a bidding war is putting that money genuinely at risk.

**Also known as:** good faith deposit, holding deposit, earnest money deposit

**Related terms:** [Escrow](https://finicade.com/glossary/escrow), [Contingency](https://finicade.com/glossary/contingency), [Closing Costs](https://finicade.com/glossary/closing-costs), [Down Payment](https://finicade.com/glossary/down-payment), [Home Inspection](https://finicade.com/glossary/home-inspection)

Source: https://finicade.com/glossary/earnest-money