Making an offer on an Augusta Road home can move fast. In a competitive Greenville market, your earnest money can strengthen your offer and protect you at the same time. If you are new to South Carolina contracts, the mix of earnest money and a separate due diligence fee can feel confusing. In this guide, you will learn what each payment does, how much buyers in 29605 typically put down, how refunds work, and how to avoid common pitfalls. Let’s dive in.
What earnest money is in South Carolina
Earnest money is a deposit you include with your offer to show the seller you are serious. If the sale closes, it is applied to your closing costs or down payment. Sellers weigh it alongside price, timelines, and contingencies when choosing an offer.
South Carolina has a key twist you should understand. You often see two payments up front:
- The due diligence fee is paid to the seller to secure your inspection and decision period. It is frequently non‑refundable if you miss the deadline or withdraw after the due diligence period ends.
- Earnest money is paid into escrow and is typically refundable or credited if you follow the contract contingencies and deadlines.
Both payments matter. A lower earnest-money deposit does not offset a non‑refundable due diligence fee, so plan for both as you build your offer.
How much to offer in Augusta Road
There is no single required amount. In Greenville, earnest money is commonly a flat amount or a percentage of price, and it rises with competition. Here are practical ranges buyers often use in Augusta Road. Treat these as guides you can tailor with your agent and attorney:
- Homes under $300,000: $1,000 to $3,000, or about 0.5% to 1%
- $300,000 to $600,000: $2,500 to $10,000
- $600,000 to $1,000,000: $10,000 to $25,000
- $1,000,000 and up: often 1% to 2% of price or higher in multiple‑offer situations
Your number should reflect current competition, your comfort with funds tied up in escrow, and any seller expectations on higher‑end listings. All terms are negotiable, so align the deposit with your overall strategy.
Where your money is held
Your contract names who holds the funds. Common escrow holders in South Carolina include:
- The listing brokerage’s trust account
- Your or the seller’s closing attorney
- A title company or escrow agent
Brokers and escrow holders must follow South Carolina rules for trust accounts and client funds. Always confirm the escrow party named in your contract, request a written receipt with the amount and date, and keep your bank records.
Safe payment tips
- Verify wiring instructions by phone using a known number before sending money. Wire‑fraud scams can spoof emails.
- Ask when the deposit will be made and get written confirmation.
- Never deliver funds to an unnamed or unverified party.
Refunds, credits, and disputes
If the sale closes, your earnest money appears as a credit on your settlement statement. If the deal does not close, what happens depends on your contract and deadlines.
Common refund scenarios include:
- You cancel within your due diligence, inspection, financing, or appraisal contingencies and follow the notice rules.
- Required conditions are not satisfied and you properly terminate.
- The seller fails to deliver marketable title or otherwise breaches.
Situations where the seller may keep the deposit or there could be a dispute include:
- You default without a permitted reason under the contract.
- You miss a contingency deadline, including the due diligence deadline.
- Your contract includes a liquidated damages clause that allows the seller to keep the deposit as the remedy.
Contracts set the process for resolving disputes, and escrow holders may retain funds until there is a written agreement or resolution. Protect yourself by tracking deadlines, putting notices in writing, and keeping all receipts and emails.
Build a competitive Augusta Road offer
Before you write the offer:
- Review today’s competition with your agent. Multiple‑offer settings often reward stronger earnest money, clear timelines, and a thoughtful due diligence fee.
- Confirm your available cash so you can place funds in escrow comfortably for several weeks.
- Decide which attorney or escrow party will hold the funds and put that in the contract.
Offer tactics that work:
- Pair a strong yet comfortable earnest deposit with clear contingency windows. Clean terms can stand out even if the deposit is modest.
- If you consider waiving contingencies to compete, increase earnest money to signal commitment, and understand the added risk if the deal falls through.
- State exactly how funds will be credited at closing to avoid confusion.
After you are under contract:
- Get a written receipt for your earnest money and note the deposit date.
- Track every deadline for inspections, financing notices, appraisal, and due diligence termination.
- If your situation changes, notify the seller in writing per the contract and consult your agent or attorney before withdrawing.
Buyer checklist
- Choose an earnest‑money amount aligned with your price band and competition.
- Name the escrow holder in your contract and get written instructions.
- Pay the due diligence fee and earnest money correctly and on time.
- Keep copies of receipts and bank confirmations.
- Calendar all contingency and due diligence deadlines. Send notices in writing.
Quick price‑band examples
- Buying near $450,000: You might offer $5,000 to $10,000 in earnest money, with a due diligence fee that matches current competition and a clear inspection window.
- Buying near $800,000: You may choose $15,000 to $25,000 in earnest money and tighten timelines to show commitment.
- Buying at $1.3M+: A deposit near 1% to 2% can be competitive, paired with efficient contingency periods.
These are examples, not rules. Your best number depends on the specific property and offer landscape this week on Augusta Road.
Mistakes to avoid
- Mixing up the due diligence fee and earnest money. They serve different purposes and have different refund rules.
- Leaving the escrow holder blank or unconfirmed. Always specify who holds funds.
- Missing deadlines. Late terminations can cost you your deposit.
- Wiring funds without verification. Always call to confirm instructions.
Your next step
You do not have to guess. With the right strategy, your earnest money can strengthen your offer without adding unnecessary risk. If you are aiming for a home in 29605, we can help you calibrate deposit amounts, set clean terms, and protect your position from contract to closing. Connect with ROSSITTO to Request Representation.
FAQs
How earnest money works in Greenville
- Earnest money is a buyer deposit held in escrow that shows commitment and is credited to you at closing, subject to the contingencies and deadlines in your contract.
South Carolina due diligence fee vs. earnest money
- The due diligence fee is often paid to the seller for your inspection and decision period and is frequently non‑refundable, while earnest money is held in escrow and may be refundable under your contract.
Typical earnest money for Augusta Road offers
- Ranges vary by price and competition, from a few thousand dollars in lower bands to 1% or more for higher‑priced homes or multiple‑offer situations.
When you can get earnest money back
- If you terminate within your contingency windows and follow notice rules, you generally receive a refund; missing deadlines can put the deposit at risk.
Who holds earnest money in South Carolina
- A listing brokerage trust account, a closing attorney, or a title company typically holds the funds, subject to state rules for escrow and client funds.
