How much earnest money is typical in Arizona? There's no set amount in the standard contract. The Arizona REALTORS resale contract simply leaves a blank for the dollar figure, and buyer and seller negotiate it. The right number depends on the price, how competitive the home is, and how strong you want your offer to look.
Is it refundable? Often, yes, if you cancel on time under a contingency. That includes the inspection period (10 days by default), the appraisal contingency and the loan contingency. If you breach and don't cure, the seller can keep it. Know your deadlines before you wire a dollar.
Data note: Contract terms come from the Arizona REALTORS Residential Resale Real Estate Purchase Contract sample (updated November 2025). Dispute handling also comes from a Phoenix REALTORS sample contract (Dec. 2024). Lender treatment comes from Fannie Mae Selling Guide B3-4.3-09. General information only; read your actual contract.
What Earnest Money Is (and Isn't)
- What it is: a good-faith deposit showing the seller you're serious
- Where it goes: the AAR contract has it deposited with the escrow company or a broker's trust account, not the seller
- How you pay: the form offers personal check, wire transfer or other
- What happens at closing: it's credited to you, typically toward your down payment and closing costs
- What it isn't: your down payment itself, and not a fee you lose just for changing your mind on time
How to Choose Your Amount
Since there's no standard percentage, think it through with your agent:
- Competition: a home with several offers may call for a stronger deposit
- Price point: a deposit that looks serious on a condo may look light on a Paradise Valley estate
- Your timeline: a short inspection period plus a larger deposit signals confidence
- Documentation: Fannie Mae says large deposits, or ones that exceed what's customary for the area, should be closely evaluated by the lender. Keep the money seasoned in your account.
A number your lender can easily verify is better than a bigger one that slows underwriting.
When You Get It Back
Under the Arizona REALTORS resale contract:
Inspection Period
- 10 days by default
- If you disapprove items and cancel on time, the earnest money goes back to you
Appraisal Contingency
- If the appraisal comes in below the price, you have five days after notice of the value to cancel and get it back. See what to do when an appraisal comes in low.
Loan Contingency
- Deliver notice that you couldn't get loan approval no later than three days before close of escrow to get it back
- Not locking a rate, or not having your down payment funds, is not an unfulfilled loan contingency
The Big Rule
- "An unfulfilled contingency is not a breach of Contract."
When You Could Lose It
- Missed deadlines that turn into a breach
- Failure to close after a cure notice. The AAR contract gives three days to cure; after that the earnest money is subject to forfeiture
- Liquidated damages: if the buyer breaches, the seller may keep the earnest money as their sole right to damages
- Waived contingencies: if you waive the appraisal contingency, a low appraisal alone won't get your money back
If There's a Dispute
- The AAR contract lets the escrow company release the money under the contract terms, in its sole discretion
- A Phoenix REALTORS sample contract (Dec. 2024) says escrow won't release disputed funds without a signed distribution agreement or a court judgment, and sends disputes to mediation first
- Escrow may also file an interpleader action and let a court decide
Protect Your Wire
The Arizona contract warns that criminals hack email accounts of brokers and title companies to send fake wire instructions. Before you send earnest money:
- Call escrow at a number you found yourself, not one in an email
- Confirm the account details verbally
- Never act on "updated" instructions without a verified call
For the full escrow timeline, see how long it takes to close in Arizona.
“I tell buyers to think of earnest money as part of the offer's story. The amount matters, but so do your deadlines. A solid deposit with a clean, realistic inspection period often lands better than a big number with a lot of open questions. And I always want you calling escrow yourself before you wire.”
— Elizabeth Vijan, Tackett Team, eXp Realty
FAQ: Earnest Money in Arizona
How much earnest money is typical in Arizona?
No fixed amount; it's negotiated and depends on price and competition.
Is earnest money refundable in Arizona?
Yes, if you cancel on time under a contingency. A breach can mean losing it.
Does earnest money count toward my down payment?
Yes. It's credited at closing; your lender will verify where it came from.
Who holds the earnest money in Arizona?
The escrow company or a broker's trust account.
Ready to Write a Strong Offer?
I'll help you set an earnest money amount and deadlines that make your offer competitive without putting your deposit at unnecessary risk.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate
Talk to Elizabeth · Call or text 602-885-7752
Sources: Arizona REALTORS sample resale contract, Nov. 2025 (PDF) · Phoenix REALTORS sample resale contract, Dec. 2024 (PDF) · Fannie Mae Selling Guide B3-4.3-09: Earnest money deposit
Disclaimer: General information, not legal advice. Contract forms change; your signed contract controls. Consult a real estate attorney with legal questions. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch