Ready to make an offer on a home in Huntington and wondering how much earnest money you should put down? You are not alone. Your deposit can help you win a home, but it also needs to be protected. In this guide, you will learn how earnest money works in New York, what is typical on Long Island, when deposits are refundable, and smart strategies to stay competitive without taking on unnecessary risk. Let’s dive in.
Earnest money basics in New York
Earnest money, sometimes called a good‑faith deposit, is money you put down to show a seller you are serious. It is usually applied to your purchase price at closing. It also motivates everyone to follow the contract.
In New York, the contract names who holds your deposit. It is commonly held in an attorney escrow account for the buyer or seller. A broker can also hold funds in a regulated trust account. Wherever it is held, you should get a written receipt that confirms the escrow holder and account.
How much is typical in Huntington
Across many New York markets, earnest money often falls in the 1% to 3% range of the purchase price. In competitive situations, buyers sometimes offer 2% to 5% or more to stand out. The right number depends on the current level of competition for that specific property.
On Long Island and in the Town of Huntington, deposits often align with the 1% to 3% range for single‑family homes. In hotter pockets like Huntington Village, Cold Spring Harbor, and waterfront areas, you may see stronger deposits. Co‑ops can follow different patterns and may expect larger deposits with board‑approval timelines.
Here is a simple example: on a $600,000 home, 1% is $6,000 and 2% is $12,000. On a very competitive listing, buyers might offer $12,000 to $30,000 to signal commitment.
When you pay and where it sits
Most buyers deliver earnest money when the offer is accepted and the contract is signed or within a short window, often 24 to 72 hours. Your contract should clearly state the due date for the deposit and the escrow holder.
In New York, attorney escrow accounts are common. The seller’s or buyer’s attorney holds the funds and issues a receipt. At closing, your earnest money is credited toward your down payment and closing costs.
If a deal is properly terminated under the contract, the deposit is returned according to the release terms. Many returns are processed within 10 to 30 days, though timing can vary. If there is a dispute, the funds may remain in escrow until the parties reach agreement or a court decides.
When your deposit is refundable
Your deposit is typically refundable if you cancel under a contingency and follow the contract’s process and deadlines. Common examples include:
Common contingencies that protect you
- Financing contingency: If you cannot obtain a mortgage commitment by the deadline and follow the notice and termination steps, the deposit is usually returned.
- Inspection contingency: If inspections reveal issues and you cancel within the inspection period per the contract, you typically receive a refund.
- Title or survey issues: If a title defect cannot be cured under the contract terms, your deposit is usually refundable.
- Co‑op board denial: If a co‑op board rejects your application within the specified period, your deposit is commonly returned.
- Attorney approval provisions: If the contract includes an attorney approval period and you cancel properly within that window, you should receive a refund.
When you risk losing the deposit
You could forfeit your deposit if you breach the contract without an allowed contingency. Be clear on your obligations and deadlines before you remove protections.
Situations that increase risk
- Waived contingencies: If you waive inspection or financing and later cancel, a refund is unlikely.
- Buyer default: If you fail to close without a contractual reason, the seller may keep the deposit as liquidated damages, subject to the contract.
- Non‑refundable clauses: Some offers include a non‑refundable portion after certain dates. This strengthens your offer but raises your risk.
If a disagreement arises, the contract governs how the deposit is handled. Attorneys often hold the funds until there is a written release or a legal resolution. Clear escrow and release language in your contract helps avoid delays.
Strategy: Win in Huntington and protect your funds
You want a deposit that strengthens your offer without putting you in a vulnerable position. The right approach depends on the property, competition, and your financial comfort level.
Balance strength and protection
- Use a meaningful but manageable deposit. In Huntington, many single‑family purchases fall in the 1% to 3% range unless competition demands more.
- Keep critical contingencies. Inspection, mortgage, and title protections are standard safeguards for most buyers.
- Consider a two‑part deposit. Offer an initial deposit at signing and a second deposit later to show commitment while managing cash flow.
- Clarify escrow and release terms. Confirm the attorney escrow holder in writing and include clear instructions for release.
- Define any non‑refundable terms carefully. If you offer a non‑refundable amount, specify exactly when and how it becomes non‑refundable, and only if you can accept the risk.
- Use escalation thoughtfully. If you use an escalation clause, cap your price and clarify whether it affects deposit size as the price increases.
Safety and fraud prevention
- Confirm wiring instructions by phone using a known, trusted number before sending any funds. Do not rely on email alone.
- When possible, deliver a check to the named attorney escrow holder or verify bank details with both your attorney and bank.
- Never send funds to new or changed wiring instructions without verbal confirmation from your attorney.
Property type differences in Huntington
Single‑family homes
- Deposits commonly run 1% to 3% of the price.
- Inspection, mortgage, and title contingencies are typical.
Condominiums
- Similar deposit ranges, with attention to condo document review periods.
- Make sure review timelines are clear to preserve refund rights.
Co‑ops
- Co‑ops often require larger deposits and follow board‑approval timelines.
- If the board denies your application within the contract period, the deposit is usually refundable.
Real‑world examples
- Standard scenario: You offer on a $600,000 single‑family home with a $12,000 deposit, inspection and mortgage contingencies, and the funds held in the seller’s attorney escrow. This is a strong, balanced structure for many Huntington listings.
- Competitive listing: You are facing multiple offers on a Huntington Village home. You consider a $25,000 deposit, faster inspection, and tight mortgage deadlines to signal readiness, while keeping core contingencies.
- Two‑part deposit: You put $10,000 at contract signing and another $15,000 after your mortgage commitment. This can help with cash management while showing the seller increasing commitment.
- All‑cash buyer: You offer a smaller deposit but pair it with a quick closing and limited contingencies. This can be effective if you are comfortable with the risk.
A quick buyer checklist
Before you make an offer
- Review recent local sales and competitiveness to set a deposit range you can afford.
- Decide which contingencies you need to protect your funds and budget.
- Plan for how you will deliver funds and to whom.
During contract negotiation
- Name the escrow holder and deposit due dates.
- Spell out inspection, financing, title, and any board contingencies.
- Include clear release instructions and timelines for deposit return.
After you pay the deposit
- Get a written escrow receipt with account details and contact information.
- Track all deadlines, including inspection periods and mortgage commitment dates.
- Keep communication and notices in writing and on time.
Before closing
- Confirm how your deposit will be credited on the closing statement.
- Verify wiring instructions with your attorney by phone before sending any funds.
Work with a local guide
New York contracts are attorney‑driven, and local practices in Huntington can vary by neighborhood and property type. The right earnest money strategy blends market insight with risk management. A trusted advisor can help you calibrate deposit size, choose the right contingencies, and set clean escrow terms so you compete with confidence.
If you are planning a purchase in Huntington or elsewhere on the North Shore, connect with a local expert who pairs market savvy with financial discipline. Reach out to Patricia Santella for tailored guidance on deposit strategy, offer structure, and next steps.
FAQs
What is earnest money in a New York home purchase?
- It is a good‑faith deposit credited to your purchase price at closing and held in escrow to show you are serious and to support the contract.
How much earnest money is typical in Huntington, NY?
- Many single‑family purchases use 1% to 3% of the price. In hot areas or multiple‑offer situations, 2% to 5% or more may be used to stand out.
When do I pay earnest money in Huntington?
- Typically when your offer is accepted and the contract is signed or within 24 to 72 hours, as stated in your agreement.
Where should my deposit be held in New York?
- Commonly in an attorney escrow account. A broker trust account is also allowed if properly managed. Always get a written receipt.
Can I get my earnest money back after a bad inspection?
- Yes, if you have an inspection contingency and you cancel within the inspection period following the contract’s procedures.
What if my mortgage is denied after I sign the contract?
- If you have a financing contingency and give proper notice by the deadline, your deposit is typically refundable.
What makes an earnest money deposit non‑refundable?
- If you waive contingencies or agree to a non‑refundable clause that triggers after certain dates, you may not get the deposit back.
How long does a refund take if the deal falls through?
- Timeframes vary by contract. Many refunds process in 10 to 30 days after proper termination, unless there is a dispute.