How much earnest money do I need to put down on a Portland home?

In Portland, earnest money is typically around 1% of the purchase price. On a $500,000 home that's $5,000; on a $650,000 home it's $6,500. In a more competitive situation — a hot listing with multiple offers — buyers often go to 2% or 3% to make their offer more attractive. The right amount depends on how competitive the specific listing is and how much liquid cash you have available at mutual acceptance.

Is earnest money an extra fee on top of what I'm paying for the home?

No. Earnest money is not an extra cost — it's an early deposit. It's held in escrow by a neutral title company between mutual acceptance and closing, and at closing it's applied directly toward your down payment or closing costs. If you close on a $650,000 Portland home with $10,000 in earnest money and a $65,000 down payment, you bring $55,000 to closing because the $10,000 earnest money already counts.

When could I actually lose my earnest money in Portland?

You could lose your earnest money if you back out of the purchase for a reason that isn't covered by one of your contract contingencies, if you miss a contractual deadline (like your inspection or financing contingency deadline), or if you otherwise breach the purchase agreement. 'I changed my mind' is not a protected reason under Oregon-standard real estate contracts.

When do I keep my earnest money back if the deal doesn't close?

You keep your earnest money if you cancel within one of the contingencies written into your contract — most commonly the inspection contingency (if the home has defects you can't live with), the financing contingency (if your lender declines), or the appraisal contingency (if the home appraises for less than purchase price and you can't renegotiate). You also keep it if the seller breaches the agreement — fails to make agreed repairs, can't deliver clear title, or walks away.

When is earnest money due in a Portland real estate transaction?

Earnest money is typically due within a few days after mutual acceptance — meaning the day both buyer and seller have signed the purchase agreement. The exact timeline is written into your contract, usually 2 to 3 business days. Missing this deadline can put the agreement in jeopardy, so confirm with your agent and escrow officer the day of mutual acceptance exactly when and how to deliver the funds.

How do I protect myself from wire fraud when sending earnest money?

Wire fraud is a real and growing risk in real estate transactions. Scammers send fake wiring instructions that look like they're from your escrow or title company. Always confirm wiring instructions directly with your escrow or title company by calling a phone number you looked up independently — not a number from the email with the wiring instructions. Never wire earnest money based on instructions received only by email without verbal confirmation. If anything about the instructions changes at the last minute, treat it as a red flag.

Who holds my earnest money between acceptance and closing?

Your earnest money is held in escrow by a neutral title and escrow company — not by your agent, not by the seller, and not by the brokerage. Under Oregon-standard real estate practice, the escrow company issues a written receipt and holds the funds in a protected escrow account until either closing (when it's applied to your purchase) or a signed cancellation (when it's released to the appropriate party).

Portland Buyer Guide

Earnest money in Portland: what it is and when you lose it

Earnest money in Portland is a good-faith deposit that shows a seller you’re serious about buying. It typically runs around 1% of the purchase price — sometimes 2% or 3% on a competitive listing. On a $500,000 Portland home that’s $5,000 to $15,000. It’s not an extra fee: it’s held in escrow by a neutral title company and applied toward your down payment or closing costs at closing. In most cases, you can get the money back if you cancel within one of your contract contingencies — inspection, financing, or appraisal. You could lose it if you back out for a reason not covered by a contingency, miss a contractual deadline, or otherwise breach the agreement. Cydelle Higa-Johnston of Own It Northwest walks through how it all works below, including the wire-fraud warning every Portland buyer needs to hear.

Video Walkthrough

Watch: Cydelle on Portland earnest money

Read video transcript

If you're buying a home in Portland, you've probably heard the term earnest money. But what is it and when could you actually lose it? I'm Cydelle Higa-Johnston and I'll explain how it all works.

Earnest money is a good faith deposit that shows a seller you're serious about buying. In Portland, earnest money is typically around 1% of the purchase price. But in a more competitive situation, you may see buyers offer two or even 3% to make their offer more attractive. Here's the important part — it's not an extra fee. Your earnest money is held in escrow by a neutral title company, and if the transaction closes, it's applied toward your down payment or closing costs.

In most cases, you can get that money back if you cancel within one of the contingencies in your contract, like the inspection, financing, or appraisal contingency.

So when could you actually lose your earnest money deposit? You could be at risk if you back out for a reason that isn't covered by a contingency, miss a contractual deadline, or otherwise breach the purchase agreement. Earnest money is also typically due within a few days after mutual acceptance, so make sure you understand exactly when yours is due.

And one last important tip — always confirm wiring instructions directly with your escrow or title company. Wire fraud is a real risk in real estate transactions. I'm Cydelle Higa-Johnston with the Own It Northwest team. Follow for more straightforward real estate tips and explanations of what actually happens when you buy a home in Portland.

How much earnest money for a Portland home purchase?

Typical earnest money ranges by purchase price. The 1% baseline applies on most Portland listings; competitive situations push buyers to 2% or 3% to signal seriousness.

Portland purchase price	Typical earnest money (1-3%)	What this looks like
$500,000 Portland home	$5,000 to $15,000	1% baseline; 2-3% signals seriousness on a competitive listing
$650,000 Portland home	$6,500 to $19,500	Common range in Alameda, Laurelhurst, Mt. Tabor
$800,000 Portland home	$8,000 to $24,000	Common range in West Linn, Lake Oswego starter homes
$1,100,000 Portland luxury	$11,000 to $33,000	Luxury listings sometimes see 2-3% as the expected minimum

Earnest money is applied toward your down payment or closing costs at closing — it’s not an additional expense on top of the purchase price.

What is earnest money, exactly?

Earnest money is a good-faith deposit a buyer makes with their offer to show the seller they’re serious about following through on the purchase. In Portland it typically runs about 1% of the purchase price — a $500,000 home comes with $5,000 earnest money, a $650,000 home with $6,500, a $1,100,000 home with $11,000. On a competitive listing, buyers often increase that to 2% or 3% to make their offer stand out when the seller is reading multiple offers side by side.

The amount is a lever, not a tax. On a soft Portland listing with time on market, 1% is usually enough. On a hot block of Alameda, Laurelhurst, or West Linn under $800K where a listing attracts five offers in a weekend, 2% to 3% signals seriousness in a way the dollar-match on list price alone can’t.

Where does earnest money actually sit?

Earnest money is held in escrow by a neutral title and escrow company. Not by your agent, not by the seller, not by the brokerage. The escrow company issues a written receipt and holds the funds in a protected escrow account until one of two things happens: the transaction closes (and the earnest money is credited to your side of the settlement) or the agreement is cancelled with written instructions on who the money is released to.

That neutral third-party structure is your protection. It’s also why wiring earnest money directly to the escrow company requires an extra layer of verification — more on wire fraud below.

When do you get your earnest money back?

You get your earnest money back if you cancel the purchase within one of the contingencies written into your contract. The three most common contingencies in Portland purchase agreements:

Inspection contingency — if the home inspection surfaces defects you can’t live with and the seller won’t negotiate repairs or credits.
Financing contingency — if your lender ultimately declines the loan or can’t fund on time.
Appraisal contingency — if the home appraises below the purchase price and you can’t renegotiate the number with the seller.

You also get earnest money back if the seller breaches the agreement — fails to deliver clear title, won’t make agreed repairs, or walks away themselves. Oregon-standard contracts require written notice to cancel; verbal doesn’t count. Document every contingency decision in writing.

When could you actually lose your earnest money?

You could lose your earnest money if you back out for a reason your contract doesn’t cover. The three most common ways buyers lose earnest money:

Walking away after a contingency expires. Each contingency has a window — commonly 10 to 15 days for inspection, 21 to 30 for financing. Once the window closes without you cancelling under it, that protection is gone.
Missing a contractual deadline. Earnest money deposit timing, document delivery timing, inspection scheduling — each is written into the contract. Missing one can put you in breach.
Breaching the agreement. “I changed my mind” is not a protected reason. Neither is “I found a better house.” If you cancel for a reason that isn’t in the contract, the seller can claim the earnest money.

If buyer and seller disagree about who gets the earnest money, Oregon-standard contracts push the dispute to mediation and then arbitration — not a judge. Know that going in. The best protection is to not create the dispute in the first place: understand every contingency and every deadline before you sign.

When is earnest money due in a Portland transaction?

Earnest money is typically due within a few days of mutual acceptance — the day both buyer and seller have signed the purchase agreement. Standard Portland contracts specify 2 to 3 business days. Check your exact contract.

On the day of mutual acceptance, your agent and the escrow officer will confirm where the funds go (which escrow company, which account) and how to deliver them (wire transfer in most cases). Treat this timeline seriously — missing the earnest money delivery deadline is one of the easier ways to put a purchase at risk.

Wire fraud protection: verify instructions by phone

Wire fraud is a real and growing risk in real estate transactions. Scammers intercept email communication between the buyer, agent, and escrow company and send fake wiring instructions that look authentic. Buyers who follow the fake instructions wire their earnest money to a scammer’s account and often have no recovery.

The rule: always confirm wiring instructions directly with your escrow or title company by phone. Call a number you looked up independently — not the number in the email with the wiring instructions. If anything about the instructions changes at the last minute, treat it as a red flag and call again. Never wire earnest money based on instructions received only by email without verbal confirmation.

The FBI and the National Association of Realtors have published alerts on this specific scam. The verification call takes two minutes and is the single most effective step a Portland buyer can take to protect their earnest money.

Common questions about earnest money in Portland

How much earnest money do I need to put down on a Portland home?: In Portland, earnest money is typically around 1% of the purchase price. On a $500,000 home that's $5,000; on a $650,000 home it's $6,500. In a more competitive situation — a hot listing with multiple offers — buyers often go to 2% or 3% to make their offer more attractive. The right amount depends on how competitive the specific listing is and how much liquid cash you have available at mutual acceptance.
Is earnest money an extra fee on top of what I'm paying for the home?: No. Earnest money is not an extra cost — it's an early deposit. It's held in escrow by a neutral title company between mutual acceptance and closing, and at closing it's applied directly toward your down payment or closing costs. If you close on a $650,000 Portland home with $10,000 in earnest money and a $65,000 down payment, you bring $55,000 to closing because the $10,000 earnest money already counts.
When could I actually lose my earnest money in Portland?: You could lose your earnest money if you back out of the purchase for a reason that isn't covered by one of your contract contingencies, if you miss a contractual deadline (like your inspection or financing contingency deadline), or if you otherwise breach the purchase agreement. 'I changed my mind' is not a protected reason under Oregon-standard real estate contracts.
When do I keep my earnest money back if the deal doesn't close?: You keep your earnest money if you cancel within one of the contingencies written into your contract — most commonly the inspection contingency (if the home has defects you can't live with), the financing contingency (if your lender declines), or the appraisal contingency (if the home appraises for less than purchase price and you can't renegotiate). You also keep it if the seller breaches the agreement — fails to make agreed repairs, can't deliver clear title, or walks away.
When is earnest money due in a Portland real estate transaction?: Earnest money is typically due within a few days after mutual acceptance — meaning the day both buyer and seller have signed the purchase agreement. The exact timeline is written into your contract, usually 2 to 3 business days. Missing this deadline can put the agreement in jeopardy, so confirm with your agent and escrow officer the day of mutual acceptance exactly when and how to deliver the funds.
How do I protect myself from wire fraud when sending earnest money?: Wire fraud is a real and growing risk in real estate transactions. Scammers send fake wiring instructions that look like they're from your escrow or title company. Always confirm wiring instructions directly with your escrow or title company by calling a phone number you looked up independently — not a number from the email with the wiring instructions. Never wire earnest money based on instructions received only by email without verbal confirmation. If anything about the instructions changes at the last minute, treat it as a red flag.
Who holds my earnest money between acceptance and closing?: Your earnest money is held in escrow by a neutral title and escrow company — not by your agent, not by the seller, and not by the brokerage. Under Oregon-standard real estate practice, the escrow company issues a written receipt and holds the funds in a protected escrow account until either closing (when it's applied to your purchase) or a signed cancellation (when it's released to the appropriate party).

Related Portland buyer guides

Guide

The Portland home-buying process

Full walkthrough of the Portland buying process, including how earnest money fits into the timeline.

Guide

How much money you actually need to buy a Portland home

The four pools of cash a buyer needs: down payment, closing costs, earnest money, and reserves.

Guide

Closing costs in Oregon

What buyers and sellers each pay at closing — separate line items from the earnest money deposit.

Guide

Portland home inspection costs

The four inspections every Portland buyer should budget for and what each one costs.

Have a Portland offer coming together?

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