Buying in Milwaukie and hearing about “earnest money” for the first time? You are not alone. This small but important deposit can shape how strong your offer looks and how protected your funds are. In this guide, you will learn what earnest money is, how much buyers in the Portland‑metro area often use, when it is due, how refunds work, and how to keep your money safe from fraud. Let’s dive in.

Quick answers: earnest money basics

• What it is: A good‑faith deposit you pay after offer acceptance to show you intend to buy. It is typically applied to your funds at closing unless the contract says otherwise.
• Who holds it: Usually a title or escrow company’s trust account, or a broker trust account, as specified in your Oregon purchase agreement.
• When it is due: Commonly within 24–72 hours after mutual acceptance, but your contract controls the exact deadline.
• How much to offer: Varies by price and competition. Many buyers use 1–3% of price as a starting point, with higher amounts in more competitive situations. Flat amounts like $1,000–$3,000 are sometimes used on lower‑priced homes.
• When it is refundable: If you cancel under a written contingency within the deadline and follow the contract procedures.
• How to deliver: Wire transfer, cashier’s check, or other method approved by the holder. Confirm wiring details by phone to avoid fraud and get a written receipt.

What earnest money is

Earnest money is your upfront deposit that signals serious intent to purchase. In Oregon, it is written into your residential purchase agreement and becomes part of your funds at closing unless the parties agree otherwise. Sellers view this deposit as a sign that you are committed, which can strengthen your offer.

The amount, holder, and delivery deadline are spelled out in your contract. Because practices are driven by local custom and the agreement’s language, reading your specific terms matters.

Who holds your funds

In Oregon, the deposit is typically held in one of two places: a title or escrow company trust account, or a real estate brokerage trust account. Your purchase agreement names the holder and the timing. Ask for written confirmation of where the funds will be deposited and how you will receive a receipt.

How much to offer in Milwaukie

There is no single correct number. Amounts depend on price, property demand, and seller expectations. In balanced conditions, buyers often start with 1–3% of the price. In competitive situations, some buyers go higher.

Here are simple illustrations to help you size the deposit:

• $2,000 on a $300,000 home is about 0.67%.
• On a $450,000 home, 1% is $4,500 and 2% is $9,000.

Treat these as examples, not rules. Milwaukie norms can shift with market conditions. Ask your agent to share recent local deposit sizes and winning-offer patterns so you can calibrate with confidence.

Timeline from offer to closing

Local practice is important, but your contract is the final word. A common sequence looks like this:

Deposit delivery

Once your offer is accepted, you typically have a short window, often 24–72 hours, to deliver funds to the named holder. Plan your transfer method in advance so you meet the deadline.

Inspection period

Most buyers have an inspection or due‑diligence window, commonly about 7–10 days in many markets. If you cancel or negotiate repairs within this period as allowed by the contract, your earnest money is generally refundable.

Appraisal and financing

Financing and appraisal milestones usually fall within the first few weeks. Depending on your lender and loan type, a financing contingency window may run roughly 21–30 days. If your loan is denied despite good‑faith efforts and you follow the contract’s notice procedures, you may be eligible for a refund.

Title review

If title research reveals issues that are not resolved per the contract timelines, you may have the right to cancel and recover the deposit.

Closing day

On closing, your earnest money is applied to your funds. The deed records and you receive the keys.

Refund rules and risks

Contingencies that protect you

Contracts often include buyer protections. If you act within the deadlines and follow the required steps, earnest money is typically refundable when you cancel due to:

• Property inspections or due‑diligence findings
• Loan denial despite good‑faith efforts under a financing contingency
• Low appraisal when the contract provides an appraisal option
• Title defects that are not cured on time

When you could lose it

You risk forfeiting earnest money if you:

• Miss contingency deadlines, then cancel without a contractual basis
• Fail to deliver the deposit on time per the agreement
• Refuse to close for reasons not covered by contingencies and without written mutual agreement

If there is a dispute

If buyer and seller disagree over who should receive the funds, the holder usually keeps the money in trust until there are written instructions, a mutual release, or a contract‑directed dispute process such as mediation, arbitration, or court action. For significant disputes, speak with a real estate attorney.

How to pay safely

Accepted forms

Most holders accept wire transfer or a cashier’s check. Some accept personal checks, which can delay clearance. Confirm acceptable forms before sending funds.

Wire‑fraud safety steps

• Call the title or escrow company using a verified phone number to confirm wiring instructions.
• Never rely solely on emailed instructions or links.
• Verify the account name and number for every transfer, including last‑minute changes.
• Send your wire early enough to meet the deposit deadline.

Get receipts and confirmation

Request a written receipt and keep proof of the date, amount, and account holder. Save all emails and texts that document instructions and delivery.

Local checklist for Milwaukie buyers

Use this quick list right after your offer is accepted:

• Confirm the deposit amount, holder, and delivery deadline in your signed agreement.
• Ask the holder about acceptable payment methods and cutoff times for same‑day credit.
• Coordinate with your lender on appraisal and loan timelines so contingency dates are realistic.
• Set calendar reminders for the inspection, title, financing, and appraisal deadlines.
• Keep communication in writing and save all receipts.

Simple scenarios

• Example 1: You offer on a $450,000 Milwaukie home with a 2% deposit. You complete inspections within the agreed period, request repairs, and the seller declines. You cancel within the window under the inspection contingency and receive your deposit back.
• Example 2: You deliver a $5,000 deposit on time, then later try to cancel after the inspection deadline without a covered reason. The seller may be entitled to keep the funds based on the default language in the agreement.

These are illustrations. Your actual outcome depends on your specific contract timelines and contingencies.

Market update note

Practices and norms change with market conditions. Guidance here reflects Oregon and Portland‑metro customs as of November 2025. Ask your Milwaukie agent for current deposit ranges, typical contingency lengths, and recent winning‑offer examples before you write your next offer.

When you are ready to make a strong, well‑protected offer in Milwaukie, we will walk you through the numbers, deadlines, and delivery steps so you feel confident at every turn. If you want a calm, step‑by‑step plan tailored to your goals, connect with the team at Wings NW Real Estate.

FAQs

What is earnest money in an Oregon home purchase?

• It is a good‑faith deposit that shows you intend to buy. It is usually held in escrow or a broker trust account and applied to your funds at closing.

How much earnest money should Milwaukie buyers plan for?

• Many buyers start with 1–3% of price or a flat amount for lower‑priced homes. Adjust based on competition and ask your agent for current local norms.

When is earnest money due after my offer is accepted?

• The contract sets the deadline. In many Portland‑metro deals it is within 24–72 hours, so line up your payment method in advance.

Can I get my earnest money back after an inspection in Milwaukie?

• If your contract includes an inspection contingency and you cancel within the allowed timeframe and procedure, the deposit is typically refundable.

Who holds my earnest money and is it safe?

• A title or escrow company or a broker trust account usually holds it. Confirm details by phone, follow wire‑fraud precautions, and get a written receipt.

What happens if the appraisal comes in low in Oregon?

• If your agreement includes an appraisal option and you act within the timelines, you can often renegotiate or cancel with a refund of the deposit per the contract.

What if I want to cancel after contingencies expire?

• Canceling without a covered reason after deadlines can put your deposit at risk. Review your agreement and speak with your agent, and consult a real estate attorney if needed.