Ready to write an offer on a Dawsonville home but not sure how earnest money works in Georgia? You are not alone. This small deposit can make your offer stronger, protect your timeline, and keep your deal on track. In this guide, you will learn how much to put down in Dawsonville and Lake Lanier suburbs, when it is due, how refunds work, and how to keep your money safe from fraud. Let’s dive in.
Earnest money basics in Georgia
Earnest money is a good‑faith deposit that you agree to pay when your offer is accepted. It shows the seller you are serious about buying and it is credited back to you at closing toward your cash to close. If you breach the contract, the seller may be entitled to keep it depending on the written terms.
In Georgia, the purchase agreement spells out how much you will deposit, who will hold the funds, and when the deposit is due. Escrow can be held by a broker, a title or closing company, or a closing attorney. The contract controls when funds are released, refunded, or forfeited.
Due diligence fee vs. earnest money
Georgia contracts may include a separate due diligence fee paid directly to the seller. That fee is often non‑refundable and gives you the right to terminate during the due diligence period. Earnest money is different. It is usually held in escrow and is refundable or forfeitable based on contingencies and deadlines in the contract.
How much earnest money in Dawsonville
Local norms in Dawsonville and the Lake Lanier corridor change with supply, demand, and seasonality. Your strategy depends on the home type, price, and how competitive the listing is. Buyers on waterfront or amenity properties often face more competition and may choose a higher deposit.
Typical Dawsonville ranges you can expect:
- Slower or balanced market: $1,000 to $2,500 for modest homes, or about 1 percent of the price.
- Moderately competitive: 1 to 2 percent of the price, or roughly $2,500 to $5,000.
- Strongly competitive or higher‑priced homes: 2 to 5 percent or more, sometimes paired with a larger non‑refundable due diligence fee.
These are common ranges, not rules. Your exact number should fit your budget, the property, and current conditions on that street or lake cove.
What affects the amount
- Number of competing offers and days on market.
- Your financing profile. Cash buyers often choose larger deposits.
- Property type and features. Waterfront or rare amenities can push deposits higher.
- Whether you include a separate due diligence fee, and how large it is.
Deadlines and contingencies you must track
All key dates live in your purchase agreement. That includes deposit delivery, the inspection or due diligence period, financing and appraisal timelines, and the closing date. Missing a deadline can put your earnest money at risk.
Typical timing in Georgia:
- Earnest money delivery: commonly due within 24 to 72 hours after both parties sign the contract.
- Due diligence period: often 7 to 10 days for inspections, but negotiable.
- Financing contingency or loan commitment: often 30 to 45 days depending on lender and loan type.
- Appraisal contingency: usually runs with your financing timeline.
- Closing date: commonly 30 to 60 days from contract acceptance.
Refunds, termination, and risk
If you terminate within an allowed contingency window, earnest money is typically refundable, subject to the contract. If you default after contingencies expire, the seller may be entitled to keep the deposit as liquidated damages or pursue other remedies as written in the agreement.
If you paid a separate due diligence fee, that amount is commonly non‑refundable even if you cancel during the due diligence period. The earnest money may still be refundable if you follow the contract’s steps and timelines.
Escrow handling and wiring safety
Your contract names who will hold the deposit. In Georgia, common escrow holders include title or closing companies, closing attorneys, and brokers. You should receive written confirmation of receipt and details of the escrow account where funds are held.
Wire fraud is a real risk in real estate. Criminals target buyers with fake emails that look like they are from your agent or closing office. Protect your funds with strict verification.
Best practices to keep your money safe:
- Never rely on wiring instructions sent by email alone. Verify by calling the title company or closing attorney at a phone number you obtain from their official website or prior verified documents.
- Confirm wiring details before you send funds and again just before initiating the wire.
- Consider a cashier’s check payable to the title or closing company if accepted.
- Be skeptical of last‑minute changes. Confirm any change by phone with a known contact.
- Ask your bank about wire verification tools and fraud prevention.
If you suspect fraud:
- Contact your bank and the title or closing company immediately to request a stop or recall.
- Report the incident to local law enforcement and the FBI’s Internet Crime Complaint Center (IC3).
- Save all emails and messages for investigators.
Negotiating your offer in Dawsonville
How you structure earnest money and timelines can help your offer stand out without exposing you to unnecessary risk.
- In balanced conditions: consider 1 percent or a fixed amount like $2,000 to $5,000 with a standard 7 to 10 day inspection period.
- In multiple‑offer situations or on premium properties: consider a larger deposit or a higher due diligence fee only if you are comfortable with the risk.
- Protect your contingency windows. Track every deadline and send notices on time.
- Pair your deposit with strength signals like a recent pre‑approval or proof of funds.
- Shorten timelines only if you can realistically meet them.
Quick Dawsonville buyer checklist
- Confirm the exact earnest money amount and delivery deadline in your signed contract.
- Confirm who will hold the funds and get a written receipt when the deposit is received.
- Verify the length of your inspection or due diligence period and whether a separate due diligence fee applies, plus its refundability.
- Confirm your financing contingency, loan commitment date, and appraisal timing.
- Use secure wiring verification steps. Call the title company using a number from its official website.
- Keep copies of every receipt, wire confirmation, and escrow communication.
- Ask your agent whether your deposit level fits today’s Dawsonville and Lake Lanier conditions.
Common mistakes to avoid
- Sending the deposit late or to the wrong account. Always confirm the delivery method and deadline.
- Confusing the due diligence fee with earnest money. They have different refund rules.
- Letting inspection, appraisal, or financing dates slip. Missed notices can put funds at risk.
- Relying on email alone for wiring instructions. Always verify by phone with a known number.
- Offering a deposit that is too large for your comfort level. Balance competitiveness with risk.
Work with a trusted local guide
The best deposit strategy is the one that fits the property, the competition, and your comfort with risk. A local advisor can help you right‑size earnest money, set smart timelines, and protect your funds from contract missteps and fraud. If you are preparing an offer in Dawsonville or around Lake Lanier, let’s talk through the plan that fits your goals.
Have questions about earnest money or crafting a competitive offer? Reach out to Bryan Schacht for a calm, step‑by‑step approach tailored to North Georgia.
FAQs
What is earnest money in a Georgia home purchase?
- It is a good‑faith deposit credited to you at closing that shows sellers you intend to complete the purchase, with refund or forfeiture controlled by your contract.
How much earnest money is typical for a Dawsonville house?
- Many buyers use about 1 to 2 percent or $2,000 to $5,000, while highly competitive or higher‑priced homes may see 2 to 5 percent. Local conditions and price point matter.
When is earnest money due in Georgia contracts?
- It is commonly due within 24 to 72 hours after both parties sign the agreement, but your specific deadline is written into your contract.
What happens to earnest money if my loan falls through in Georgia?
- If you have a financing contingency and give timely notice per the contract, the deposit is typically refundable. If deadlines pass, your funds may be at risk.
Is the Georgia due diligence fee refundable if I cancel?
- Due diligence fees are often non‑refundable. Earnest money may be refundable based on the contract and timing of your termination.
Who should hold earnest money for a Dawson County closing?
- Title or closing companies, closing attorneys, or brokers commonly serve as escrow holders in Georgia. Confirm the named holder in your contract and get a receipt.
How do I avoid wire fraud when sending my deposit in Georgia?
- Verify wiring instructions by calling the title or closing company at a known, trusted number, confirm details before sending, and be cautious of last‑minute changes.
