How Much Earnest Money Do You Need in Virginia, and Can You Lose It?

Christine Case is a REALTOR® with NextHome Advantage in Midlothian, Virginia, helping buyers and sellers in Chesterfield County and Metro Richmond understand their options before they make a move.

Earnest money is a good-faith deposit you make when the seller accepts your offer. It tells the seller you're serious enough to put money behind your offer while the inspection, appraisal, and loan get done.

It isn't an extra fee. If you close, the full amount is credited to you on your settlement statement. It's part of the money you were already going to bring.

No Virginia law says how much. It's a number you negotiate, like price and closing date.

What I usually see here is 1% to 3% of the price. Buyers competing for a popular home often go higher. On a slower home, or one that's been on the market a while, less is common.

Here's the math on a few prices, so you can see the range:

For context, the median sale price for single-family homes in Chesterfield County was $453,975 in August 2026, according to Central Virginia Regional MLS data.

A bigger deposit can make your offer look stronger to a seller. It also puts more of your money at risk if something goes wrong. The right number is one you could live with losing in a worst case, and one that makes sense for the house you're trying to win.

The contract names an escrow agent. In Chesterfield and Midlothian, that's usually the settlement company handling your closing.

Virginia law protects that money. If a real estate brokerage receives your deposit, it has to get it to the escrow agent named in the contract by the end of the fifth business banking day, unless everyone agrees otherwise in writing. If the brokerage holds it in its own escrow account instead, the same five-day deadline applies, and the money stays there until closing or until the deal ends. That's Code of Virginia § 54.1-2108.2.

Your agent doesn't get to keep it or spend it. Neither does the seller, until the contract says so.

Your contract sets the deadline. Here, it's typically 5 to 7 days after the contract is ratified. Read the date and put it on your calendar.

Missing it is a bigger deal than it sounds. A late deposit can give the seller a reason to call you in default, even if everything else is going fine.

Most buyers who cancel the right way get their deposit back. "The right way" means three things: a contingency in your contract allows it, you cancel before that contingency's deadline, and you give written notice the way the contract says to.

Common contingencies that protect your deposit:

1. Home inspection. If the inspection turns up problems and you can't agree on repairs, you can usually walk away inside the inspection window. More on that here: What Really Happens During a Home Inspection in Virginia?
2. Financing. If your loan falls through for reasons your contract covers, before the financing deadline.
3. Appraisal. If the home appraises below the price and your contract has an appraisal contingency.
4. HOA or condo documents. If the home is in an HOA or condo, Virginia gives you a right to cancel after you receive the association's resale certificate. If the contract doesn't set a different time, you have three days, and your deposit comes back without penalty. That's Code of Virginia § 55.1-2312. In Chesterfield, plenty of neighborhoods have an HOA, so this one comes up a lot.

Your contract may have other contingencies too, like selling your current home first. The ones in your contract are the ones that count.

Sometimes a deal ends and both sides think the deposit is theirs. In Virginia, when a brokerage is holding it, the broker can't just pick a winner. (When a settlement company holds it, the contract and the escrow agreement decide how a dispute is handled.) Under § 54.1-2108.2, the money stays in escrow until one of these happens:

• Both buyer and seller sign a written agreement saying who gets it.
• A court orders it.
• The broker hands the money to the court to decide (called an interpleader).
• The contract's terms are clear and explicit about who gets it, and the broker releases it on that basis. The broker can send written notice first, and the other side has 15 calendar days to protest in writing.

In real life, most of these get settled with a signed release. Disputes are slow and stressful, which is why it pays to protect the deposit up front.

• Missing a contingency deadline. This is the big one. If your inspection window closes on day 10 and you send your notice on day 11, you may have lost that protection. Every contingency has a clock.
• Canceling for a reason the contract doesn't cover. "I found a house I like better" or "we changed our minds" usually isn't a contingency.
• Waiving contingencies to win the house without knowing what you gave up. Sometimes waiving one makes sense. Know exactly which protection you're giving up, and what it could cost you, before you do it.
• Changing your finances mid-deal. A new car loan, a job change, or a big credit card charge before closing can put your loan at risk. More on this in 10 Things That Can Quietly Destroy Your Home Purchase.
• Wiring money to the wrong place. Scammers send fake emails that look like they're from your agent or settlement company, with "updated" wiring instructions. Before you wire anything, call the settlement company at a number you already know is real. Never use a phone number or link from the email. The Consumer Financial Protection Bureau has a one-page guide on this: Buying a home? Beware of mortgage closing scams.

These are examples, not real clients.

A first-time buyer in Chesterfield offers on a $400,000 home with a $4,000 deposit. The inspection finds an older roof near the end of its life. The seller won't budge on repairs. The buyer sends a written notice on day 7 of a 10-day inspection window. The deposit comes back.

A buyer in a Midlothian HOA neighborhood gets the resale certificate two days after ratification. Reading it, they find a special assessment coming for pool repairs. They decide it's not for them and cancel in writing within three days of getting the certificate. Under § 55.1-2312, the deposit comes back without penalty.

A buyer finds a different house they like better, three weeks into the deal. No contingency covers "I found another house." If they walk away, the seller may be entitled to keep the deposit, depending on the contract's default terms. That's the moment to stop and talk before sending anything.

Is earnest money required in Virginia?

No Virginia law requires it, but almost every offer includes one. A seller is unlikely to accept an offer without it.

Is earnest money the same as a down payment?

No, but it goes toward it. At closing, your earnest money is credited to you and counts toward your down payment and closing costs.

Is earnest money refundable in Virginia?

It can be. If you cancel under a contingency in your contract, on time and in writing, it normally comes back to you. If you back out for a reason the contract doesn't allow, you can lose it.

How long does it take to get earnest money back in Virginia?

If buyer and seller both sign a release, it's usually quick. If there's a dispute, the money stays in escrow until the parties agree, a court decides, or the broker releases it under clear contract terms after a 15-day notice period.

Can I pay earnest money with a personal check?

Yes. Settlement companies here usually take a personal check or a wire. If you wire it, call the escrow agent at a number you know is real before sending.

What happens to my earnest money if the seller backs out?

If the seller defaults, your deposit comes back to you, and you may have other remedies under the contract. Talk with a Virginia real estate attorney about those.

Does a higher earnest money deposit help my offer?

It can. It tells the seller you're serious. It also puts more of your money at risk. Pick a number that's strong for the house and one you can afford to have tied up until closing.

Earnest money is one line on the contract, but it touches almost every other line: the deadlines, the contingencies, and what happens if something goes sideways.

Before you write an offer, text me the house you're looking at. I'll walk you through what a reasonable deposit looks like for that home, which contingencies protect it, and every date you'll need on your calendar. If something about a deal doesn't feel right, I'll tell you that too. Call or text me at (804) 381-1628, or send me a message. New to buying? Start with buying your first home with Christine.

Christine Case is a REALTOR® with NextHome Advantage in Midlothian, Virginia, helping buyers and sellers in Chesterfield County and Metro Richmond understand their options before they make a move.

Christine Case | REALTOR® | NextHome Advantage | Midlothian, VA

This article is general education, not legal advice. Your contract controls. For legal questions about a specific deal, talk with a Virginia real estate attorney.