< All Topics Main FAQs What is an earnest money deposit? What is an earnest money deposit? PostedJune 21, 2021 UpdatedAugust 31, 2021 ByElizabeth N. Molina Earnest money is put down before closing on a house to show you are serious about purchasing. It is also known as a good faith deposit. … Earnest money protects the seller if the buyer backs out. It is typically around 1% – 3% of the sale price and is held in an escrow account until the deal is complete. Previous What is a Home Inspection? Next What should I repair or replace when preparing to sell my home?