What earnest money is
Earnest money is a deposit you put down shortly after your offer is accepted. A neutral third party (usually the title company) holds it until closing. It isn't an extra cost on top of your purchase. It gets applied toward your down payment and closing costs when the sale closes, so it's really a good-faith deposit that shows the seller you're committed.
How much is typical
There's no legally required amount. It's negotiated as part of your offer, and in practice I see a few common patterns. A flat amount in the $1,000 to $10,000 range is common regardless of price, with $5,000 being a frequent middle ground on a typical Utah home. On higher-priced homes, a percentage of the price, often around 1%, is common.
The market matters too. In a slower market, buyers can sometimes get away with less, occasionally as little as $1,000, because sellers have fewer offers to choose from. When it's more competitive, sellers usually expect more to feel confident you'll follow through. A bigger deposit can also help your offer stand out against multiple offers, since it signals you're not likely to walk away.
What earnest money protects, and for whom
This is where people get tripped up. Your earnest money is refundable as long as you back out for a reason covered in your contract (most commonly during due diligence, your inspection window, or because your financing falls through) and you act before the deadline.
Back out for a reason outside those protections, or after the deadline has passed, and the seller can usually keep it. That's their compensation for taking the home off the market while you had it under contract.
The deadlines matter more than the dollar amount. A buyer with a $2,000 deposit who understands their contingency deadlines is in a safer position than a buyer with $10,000 down who lets those deadlines quietly pass.
What happens to it at closing
If you go through with the purchase, your earnest money doesn't disappear. It's credited toward your down payment and closing costs. You're not paying it and then coming up with your full down payment on top. It's just money you've already put toward the house.
What I'd actually recommend
I'll help you land on an amount that's competitive for the specific home and market, not a generic number. And I'll make sure you know exactly when your contract deadlines fall, because that's what protects your deposit, not the size of the check. If your earnest money ties into anything specific about your financing, it's worth a quick conversation with your loan officer too.
Ask about your specific offer