How this number is made
Earnest money is a deposit with the offer, later applied to the price if you close. The percent is local custom and negotiation, not a rule. One percent is only a starting input.
- Use the offer price.
- Change the percent to what your contract or market actually uses.
Formula
Deposit = offer × percent.
Worked example
With the figures already in the form, earnest money is $4,500.
Questions
Do I get it back?
If you close, it becomes part of the down payment. If you cancel, it depends on the contingencies in the contract. This page does not read contracts.
Is 1% enough?
In some markets a seller wants more before they take the house off the market. The deposit is a signal as much as a formula.