What Is Earnest Money and How Much Do I Need in the Kansas City Metro?
If you’re buying a home in the Kansas City Metro, one of the first questions you’ll hear after writing an offer is:
“How much earnest money are you putting down?”
Earnest money is a key part of the home-buying process, but it’s often misunderstood. Let’s break it down clearly, specifically for buyers in the Kansas City market.
What Is Earnest Money?
Earnest money is a good-faith deposit you submit after your offer isaccepted. It shows the seller that you’re serious about buying the home. The funds are typically held by the title company and later applied toward your closing costs or down payment. This is not an extra fee. It’s your money, just moved earlier in the process.
How Much Earnest Money Is Typical in Kansas City?
In the Kansas City Metro, earnest money usually ranges from:
1% of the purchase price in balanced markets
More in competitive situations, especially when there are multiple offers
Sometimes less for first-time buyers, depending on price point and seller expectations
For example:
$300,000 purchase → $3,000 earnest money is common
$450,000 purchase → $4,500 or more may be expected in hot areas
There’s no universal rule. Neighborhood, price range, and market conditions all matter.
What Happens to My Earnest Money?
It’s deposited shortly after contract acceptance
It’s credited back to you at closing
If the contract falls apart within protected contingencies (inspection, financing, appraisal), the earnest money is typically refundable
This is why contract structure and timelines are so important!
When Could Earnest Money Be at Risk?
Earnest money is usually only at risk if:
Contract deadlines are missed
Buyer walks away without a protected contingency
Financing or appraisal contingencies are waived
This is where coordination between your Realtor and your lender matters!
Why Planning Ahead Matters…
Buyers who understand earnest money before writing an offer are more confident and make stronger decisions. I help my clients plan their cash flow so earnest money, inspections, and closing costs are all accounted for upfront.
Ready to Explore Your Options? Let’s Talk.
Earnest money shouldn’t be scary, but it should be understood. When structured correctly, it protects both the buyer and the seller and keeps transactions moving smoothly. If you’re preparing to buy in the Kansas City Metro and want to review your numbers before writing an offer, let’s talk.
Jim Yarrington
Senior Mortgage Loan Officer
First State Bank Mortgage
👉 Apply online
📞 Call or text: 913-915-1855
All loans subject to approval. Equal Housing Lender.