Earnest Money 101: What It Is, How Much Is Normal in Texoma, and When You Get It Back

Earnest money is a good-faith deposit that shows a seller you're serious about the purchase — it is not an extra fee, and it is not held by your agent. In our Texoma market, it's typically 1%–2% of the purchase price, held by a neutral title or escrow company until closing.

What Is Earnest Money, Exactly?

When you make an offer, you put down a deposit that gets credited toward your down payment and closing costs at closing. It demonstrates to the seller that you intend to follow through. It is separate from your down payment and separate from any option fee (Texas) or inspection-period arrangement (Oklahoma).

Who Actually Holds the Money?

Not the seller, and not your agent — a neutral third party, usually a title company or escrow agent, holds earnest money in trust until closing. This protects both sides: the seller knows the funds exist and are secured, and the buyer knows the money isn't accessible to either party outside the terms of the contract.

What's Normal in Texas and Oklahoma Near Lake Texoma?

• Typical earnest money in our market runs roughly 1%–2% of the purchase price, though it can be negotiated higher in a competitive multiple-offer situation to strengthen an offer
• Texas deals typically run alongside a separate, smaller option fee during the option period, which is a different payment with a different purpose (it buys the right to terminate for any reason during that window)
• Oklahoma deals typically structure this through an inspection period rather than Texas's option-period/option-fee structure — ask your agent which applies to your specific contract

When Do You Get It Back — and When Do You Not?

Generally, a buyer gets earnest money back if the deal falls through for a reason protected by the contract — financing fell through under a financing contingency, the home didn't pass inspection under an inspection contingency, the appraisal came in short and there's an appraisal contingency, or title issues come up. A buyer typically forfeits earnest money by backing out for a reason not covered by an active contingency, or by missing a deadline spelled out in the contract (like the option period in Texas). This is exactly why reading your contract's contingency deadlines carefully — and keeping track of them — matters as much as the number itself.

Your contract is the specific document that controls your actual rights here — this is general education, not a substitute for reading your own paperwork with your agent. This is Part 4 of our "What We Wish Every Buyer Knew" series — next: why your realtor isn't a general contractor, and what that means during inspections.