Last updated: September 2026.

Short answer: 1% to 3% of the purchase price, and here in Lake County you're usually fine at the lower end of that range unless you're competing for a well-priced home. It's one of the first numbers buyers ask about, right after down payment, and it trips people up because it gets confused with the down payment itself.

Here's what earnest money actually is, how much is typical locally, and what happens to it between contract and closing.

What Earnest Money Actually Is

Earnest money, sometimes called a good faith deposit, is money you put up shortly after a seller accepts your offer. It tells the seller you're serious and gives them something at stake if you walk away without a valid reason. It is not an extra cost. If the sale closes, it's credited straight toward your down payment or closing costs.

It's also not the same as your down payment, even though both eventually apply to the same transaction. The down payment is what your lender requires you to put toward the purchase. Earnest money is what you offer the seller, negotiated as part of the contract itself.

How Much Is Typical Here

Florida has no statutory minimum or maximum. The amount is whatever gets written into the contract, and statewide it typically runs 1% to 3% of the purchase price. In competitive coastal markets like Sarasota or Broward, buyers often go to the higher end of that range, or beyond, to stand out.

Lake County isn't that kind of market right now. Homes here are taking around 45 to 60 days to go under contract on average, inventory has been building, and buyers generally have some room to negotiate. In practical terms, that means a 1% deposit is often plenty for a typical resale. You'd lean closer to 2% or 3% mainly if you're bidding on a newer or especially well-priced home that's likely to draw more than one offer, or if you're waiving contingencies to make your offer stronger.

New construction is its own case. Builders frequently ask for a larger deposit, sometimes 5% or more, since they're taking on more risk building or holding a home for you specifically.

Where the Money Goes

Your earnest money doesn't go to the seller. Under Florida's standard FAR/BAR contract, it's deposited into an escrow account held by a neutral third party, usually a title company, real estate brokerage, or closing attorney, and it stays there until closing. The contract spells out the exact amount, the deadline to deliver it (often within 3 business days of an accepted offer), and who's holding it.

When You Get It Back

If you cancel for a reason the contract protects, most commonly during the inspection period, or because financing or the appraisal falls through, you get your deposit back. If you walk away without a contractual reason, the seller can typically keep it, and in some cases pursue additional damages. This is exactly why the inspection, financing, and appraisal contingencies in your contract matter so much. They're what keep your deposit protected while you do your due diligence.