When an offer comes in on your Woodstock home, the price gets all your attention. But there's another number that tells you a lot about how serious the buyer is. The earnest money.

Let me break it down for you the way I would sitting at your kitchen table.

What earnest money actually is

Earnest money is a good-faith deposit a buyer puts up when they go under contract. It shows they're serious about buying your home.

A few quick basics:

• It's usually 1% to 3% of the purchase price (Zillow)
• It's held in escrow, not handed to you directly
• At closing, it gets credited toward the buyer's down payment or closing costs
• If the buyer walks away the wrong way, you may get to keep it

So on a Woodstock home, where the median sale price has been running roughly between the $440,000s and around $510,000 in 2026, the math looks like this on a $500,000 home:

• 1% = $5,000
• 2% = $10,000
• 3% = $15,000

More earnest money usually means a more committed buyer. That matters, and we'll come back to it.

Who holds the earnest money

This is important, and a lot of sellers get it wrong. The earnest money does not come to you when the contract is signed.

In Georgia, it's held in an escrow or trust account by a neutral third party, usually:

• The closing attorney
• A title company, or
• The listing broker's trust account

Whoever holds it keeps it safe until the deal closes or the contract ends. Nobody just pockets it.

When it's deposited

Once you and the buyer have a binding agreement, the buyer has to deliver the earnest money to the escrow holder by the deadline spelled out in the contract. That's often within a few days of going under contract.

If the buyer misses that deadline, that's a red flag, and it can even put them in default. It's one of the first signs of whether you've got a serious buyer or not.

The Georgia wrinkle: due diligence fee vs earnest money

Here's where Georgia is a little different, and where a lot of confusion happens. In most Woodstock contracts, you'll see two separate things:

• Due diligence fee: A smaller amount paid directly to you, the seller, usually when the contract is signed. It's typically nonrefundable. It pays you for taking your home off the market while the buyer inspects.
• Earnest money: The larger deposit held in escrow. It may be refundable to the buyer if they terminate properly during the due diligence period.

They are not the same thing. The due diligence fee is yours to keep in most cases. The earnest money depends on how and when the buyer exits.

The due diligence period, and why it matters to you

Georgia is a "buyer beware" state, so most contracts include a due diligence period. This is a negotiated window, often around 7 to 14 days in our area, though it can be shorter in a competitive situation.

During that window:

• The buyer can inspect the home and review documents
• The buyer can terminate for almost any reason, with proper written notice, and get their earnest money back
• The buyer can ask you for repairs or credits

Here's the key part for you as a seller. During due diligence, the buyer holds most of the power. If they back out correctly and on time, the earnest money goes back to them.

When you actually get to keep the earnest money

This is the question every seller asks. You generally get to keep the earnest money when:

• The buyer backs out after the due diligence period ends, with no valid contingency, or
• The buyer misses contract deadlines or fails to perform, again with no valid reason in the contract

In other words, once due diligence is over, the buyer's money is on the line. If they walk for no contractual reason after that, the deposit can be yours as compensation for the time your home sat off the market.

A few honest notes:

• If a buyer terminates correctly during due diligence, you don't keep the earnest money
• If there's a dispute, the funds stay in escrow until both sides agree or it's settled. The standard Georgia REALTORS contract lays out how that's handled
• Financing and appraisal protections are separate contingencies, so read the contract carefully

How to read an offer using earnest money

Price is only part of the story. When I help you compare offers, the earnest money and due diligence terms tell me how strong an offer really is.

Stronger signals:

• A higher earnest money deposit (closer to 2% or 3%)
• A shorter due diligence period
• A due diligence fee that shows real commitment

Weaker signals:

• A very small earnest money deposit
• A long due diligence window
• Slow delivery of the deposit

Two offers at the same price can be miles apart once you look at these terms. A slightly lower price with strong earnest money and a short due diligence period can be the safer, better deal. That's the kind of thing I walk you through so you're not just chasing the biggest number on page one.

Getting these terms right starts before the offers ever come in. It's part of how I help sellers prepare and price, so your home attracts strong, committed buyers from day one. If you want to see where your home stands in today's market, you can request a real home value here to start with a clear number. You can also learn more about how I work with Woodstock sellers anytime.

And if you're selling so you can buy your next home, it helps to understand the other side of the table too. Here's how earnest money works for buyers in Woodstock, so you're ready when it's your turn to write the offer.

Frequently Asked Questions

How much earnest money should I expect on my Woodstock home? Most buyers put down 1% to 3% of the purchase price. On a $500,000 Woodstock home, that's roughly $5,000 to $15,000. A higher deposit usually signals a more committed buyer.

Do I get the earnest money when the contract is signed? No. The earnest money is held in escrow by the closing attorney, a title company, or the listing broker. You only receive it in specific situations, like a buyer defaulting after due diligence ends.

What's the difference between the due diligence fee and earnest money? The due diligence fee is a smaller amount paid directly to you, usually nonrefundable, for taking your home off the market. The earnest money is a larger deposit held in escrow that may be refundable to the buyer if they terminate properly during due diligence.

Can I keep the earnest money if the buyer backs out? It depends on when and why. If the buyer terminates correctly during the due diligence period, they get it back. If they walk after due diligence with no valid contingency, you may get to keep it. Your contract controls the outcome.

Is a higher earnest money offer always better? It's a strong signal, but look at the whole picture. The deposit amount, the due diligence length, and the financing terms all matter. I help sellers weigh all of it, not just the price.

Heather Ann Helping sellers in Woodstock make smart home buying and selling decisions with a clear plan, better preparation, and less stress. HeatherAnnRealEstate.com 678-471-6207 Main Office: 2920 Ronald Reagan Blvd Suite 113, Cumming, GA 30041