Thinking about writing an offer on a home in the Bismarck-Mandan area? Earnest money is often the first money you put on the line, so it is normal to wonder how much to offer and how to protect it. In this guide, you will learn what earnest money is, typical amounts and timelines in the Bismarck–Mandan area, which contingencies protect your deposit, and safe ways to transfer funds. You will also get a simple checklist you can use from offer to closing. Let’s dive in.
What earnest money is
Earnest money is a deposit you give with your offer to show good faith while you work through inspections, appraisal, financing, and title review. The funds are held in a trust or escrow account until closing or release per the contract. If the sale closes, your earnest money is applied to the cash you need at closing, such as your down payment or closing costs.
Typical amounts in our area
Across many markets, a common guideline is 1 to 3 percent of the purchase price, but local custom and competition drive real decisions. In the Mandan and Bismarck area, you will often see:
- Lower competition or lower priced homes: about 500 to 2,000 dollars.
- Typical single family homes in a balanced market: about 2,000 to 5,000 dollars or around 1 percent of the price.
- Higher priced homes or very competitive situations: about 5,000 to 15,000 dollars or 2 to 3 percent or more.
Always adjust for the specific property and offer context. If you are asking the seller for concessions or using more protective contingencies, you may choose a different amount. Ask your agent for recent examples of accepted offers in Bismarck-Mandan and nearby communities so you can align with current expectations.
What affects how much you offer
- Competition and seller leverage when there are multiple offers.
- Your contingencies and how protective they are.
- Your loan type and appraisal expectations.
- The home’s price point and your comfort with risk.
- Whether you are asking for seller credits or a home sale contingency.
Who holds your deposit?
In our area, earnest money is usually placed with a neutral third party and kept in a designated trust or escrow account. Common holders include:
- A title or escrow company that will handle the closing.
- A real estate broker’s trust account, either the listing brokerage or your buyer brokerage.
- An attorney trust account is used in less common situations.
Get the name, contact details, and written deposit instructions before you send funds. When you deposit, keep a copy of the receipt and any bank confirmation. Ask for written acknowledgment from the holder that includes the amount, date, property address, and the name of the holder.
Timelines you can expect
Final dates come from your contract, but these windows are most common in our area for transactions:
- Earnest money deposit due: often within 24 to 72 hours after offer acceptance.
- Inspection period: commonly 10 to 14 business days, sometimes shorter if competition is high.
- Appraisal: This timeline can vary based on demand. Clarify with your Lender that appraisal has been ordered and the expected date it will be completed and received by the lender.
- Closing date: commonly 30 to 45 days after acceptance, unless you negotiate otherwise.
Your purchase agreement controls, so follow the specific timelines and notice requirements in your contract exactly.
Contingencies that protect you
Contingencies give you time to investigate and, if needed, cancel within the contract window. Common ones in Burleigh and Morton County include
- General home inspection contingency for the home’s structure and systems.
- Seller's property disclosure for your review of any material facts the seller knows or should have known affecting the use and enjoyment of the property.
- HOA/Condo Disclosure to review all guidelines about your property and the association
- Financing contingency for your ability to secure a loan commitment.
- Appraisal contingency when the lender’s appraisal must meet the price or terms in the contract.
- Title review and clear title contingency.
- Sale of buyer’s home contingency, often used by move up buyers, which can reduce competitiveness.
- Lead based paint disclosure and inspection for homes built before 1978.
- Radon disclosure
- Well and septic inspections for rural properties.
- Flood insurance or floodplain review when relevant.
Several other contingencies are templated on the NDAR Purchase agreement. They can be applied to the contract, along with anything else you may need, in the additional provisions section of the purchase agreement.
When you get your deposit back
Whether you receive earnest money back depends on your contract and timing. If you terminate within a valid contingency period and follow the notice steps in the agreement, the deposit is typically refundable. Examples include a timely termination under the inspection contingency, failure to obtain financing within the financing window, an appraisal outcome that triggers a right to cancel under the contract, or unresolved title issues.
Work closely with your agent on deadlines and written notices. Missing a date or using the wrong form of notice can change the outcome.
When you might lose your EMD
- Missing a contingency deadline, such as letting the inspection period expire without action.
- Waiving contingencies and then being unable to close.
- Failing to deliver the deposit on time as promised in the offer.
- Failing to close without a contractual right to cancel.
- Not providing written notice in the manner required by the contract.
If a dispute arises, the purchase agreement has rules for escrow release and dispute resolution. Ask your agent to guide you through the process, and consider consulting an attorney if needed.
Example: how EMD works at closing
Illustrative only. The numbers below are examples of how an earnest money credit reduces the cash you bring to closing.
| Offer price | EMD option | Deposit timing | EMD credit at closing | Illustrative cash to bring after credit |
|---|---|---|---|---|
| 300,000 dollars | 1 percent equals 3,000 dollars | 48 hours after acceptance | Reduces your cash due by 3,000 dollars | If your cash to close is 20,000 dollars, you bring 17,000 dollars |
| 300,000 dollars | Flat 5,000 dollars | 48 hours after acceptance | Reduces your cash due by 5,000 dollars | If your cash to close is 20,000 dollars, you bring 15,000 dollars |
Your lender and closing team will show the final credit on your closing statement.
Safe ways to transfer your EMD
- Verify wiring instructions by calling the title or escrow company at a phone number you already have from your agent or their official website. Do not rely only on email.
- Be suspicious of last minute changes to wiring or account details. Confirm by phone before you send money.
- Request a written wire instruction form listing the company name and bank information. Confirm it verbally with a known contact.
- Consider a cashier’s check or certified check delivered in person if the holder allows it.
- Keep your bank wire confirmation and request a written receipt from the holder the same day.
- If you suspect fraud, contact your bank immediately, notify the escrow holder and your agent, and report the incident to law enforcement.
Buyer checklist from offer to closing
- Discuss your earnest money strategy with your agent before you write the offer, including the amount and timing.
- Confirm who will hold the deposit and get contact details and deposit instructions.
- Write a clear deposit timeline in your offer, such as a fixed amount due within a set number of hours or banking days after acceptance.
- Include contingencies that fit your needs and the market
- When you deposit funds:
- Verify wiring details by calling a known phone number.
- Get a written receipt from the holder immediately.
- Save your bank confirmation and keep all deposit records in one place.
- The most common pratice in our area for agents to use a system called "Trust Funds" this is a SECURE EFT transaction where you will recieve a email from Trust Funds directly and it will prompt you as the buyer to enter a secert word provided to you by your agent.
- Track deadlines and act early. Submit repair requests, lender items, and any termination notices in writing and on time.
- Before closing, confirm how your earnest money will appear as a credit on the closing statement and request a final escrow accounting.
Work with a local guide
Your earnest money should move you forward, not keep you up at night. You deserve clear timelines, smart contingency planning, and the safe handling of funds that align with market norms. If you want help choosing the right deposit, setting protective deadlines, and coordinating with the title company, reach out. Start your move with Melanie Staiger - Main Site
FAQs
Is earnest money required in North Dakota?
- It is customary but not legally required, and sellers usually expect a deposit with an offer; your contract determines the amount and requirement.
How much earnest money should I put down in Mandan?
- Many local offers land around 2,000 to 5,000 dollars or about 1 percent, with smaller or larger amounts based on price and competition.
Who typically holds earnest money in the Bismarck–Mandan area?
- A broker's trust account commonly holds the funds, although a Title or escrow company trust account may also be used most often on a cash sale with a prompt closing timeframe.
Can I get my deposit back after inspection problems?
- If you have an inspection contingency and cancel within the deadline by following the contract’s notice steps, the deposit is typically refundable.
How soon do I have to deposit earnest money?
- Many contracts require the deposit within 24 to 72 hours of acceptance, but your specific agreement controls the deadline.
Is wiring my earnest money safe?
- Wiring can be safe if you verify instructions by phone using a trusted number, avoid email-only changes, and keep written confirmations.
What happens if the seller refuses to release my deposit?
- The purchase agreement governs escrow release and dispute steps, so follow the notice rules and consult your agent or an attorney as needed.
