What Is Earnest Money?
Earnest money is a good-faith deposit made by the buyer to the seller when an offer is accepted. In Ohio, it's held in escrow by the title company or brokerage — not handed directly to the seller — and applied toward your down payment or closing costs at closing. It's your way of showing the seller you're serious enough to put skin in the game.
How Much Is Standard in Greater Cincinnati?
In the Cincinnati market, 1% of the purchase price is the baseline. On a $400K home, that's $4,000. In competitive situations — multiple offers, desirable neighborhoods like Loveland or Indian Hill — buyers sometimes offer 2–3% to strengthen their position. Higher earnest money signals confidence and reduces the seller's perceived risk of the deal falling through.
When Is It Due?
In Ohio, earnest money is typically due within one to three business days of the offer being accepted — the exact deadline is written into the contract. Missing the earnest money deadline gives the seller grounds to void the contract. Have the funds ready before your offer is submitted. Personal checks, cashier's checks, and wire transfers are all accepted depending on the title company's preference.
When Can You Get It Back?
Your earnest money is protected by the contingencies in your contract. If you terminate within the inspection contingency period, you get it back. If the home doesn't appraise and you have an appraisal contingency, you get it back. If your financing falls through and you have a financing contingency, you get it back. Where buyers lose earnest money is when they walk away after all contingencies have been removed — that's when it becomes the seller's to keep.
Bottom Line on Earnest Money
Earnest money is a commitment, not a down payment. Protect it by exercising your contingencies before they expire. I walk every buyer through exactly when each deadline falls and what actions protect their deposit. You should never be surprised by an earnest money forfeiture — that only happens when the process isn't managed properly.