How Much Earnest Money is Typical in the Twin Cities Right Now?

How Much Earnest Money Is Typical in the Twin Cities?

When you’re ready to put in an offer on a home in Minneapolis, St. Paul, or the surrounding suburbs, you’ll likely come across the term earnest money. It might sound like a small detail at first, until you realize you’ll need to transfer a few thousand dollars soon after your offer is accepted.

The good news: Twin Cities buyers and sellers generally follow some consistent patterns when it comes to earnest money. You don’t need to risk your life savings, but choosing the right amount can still make your offer feel stronger.

Key Takeaways

• Earnest money in the Twin Cities is often around 1%–2% of the purchase price.
  
  
• Many buyers use $1,000–$3,000 on entry-level homes, and $2,500–$10,000 on many mid-range offers.
  
  
• Earnest money is typically due within 1–3 business days after acceptance, sometimes sooner.
  
  
• It’s usually credited toward your down payment or closing costs at closing.
  
  
• You can reduce risk by using clear contingencies and staying on top of deadlines.
  
  

What are Typical Earnest Money Ranges in Minnesota?

Most offers in the Twin Cities fall somewhere between 1% and 2% of the purchase price, though higher amounts can appear in competitive markets. Here’s what’s common right now:

• Entry-level homes: $1,000–$3,000, sometimes a bit more if there are multiple offers
  
  
• Mid-range homes: $2,500–$10,000, often around 1%–2% of the purchase price
  
  
• Luxury or highly competitive markets: 1%–3%, or occasionally higher depending on strategy and comfort level
  
  

Keep in mind, earnest money isn’t a fee. It’s typically credited toward your down payment or closing costs when the deal closes.

Flat Amount vs. Percentage

Both approaches are typical in Minnesota.

• Lower-priced homes often use a flat amount (for example, $2,000 on a smaller condo).
  
  
• As prices increase, offers more frequently use a percentage format, typically 1%–2%, to stay proportional.
  
  

Think of earnest money as a signal of seriousness. Sellers want to see that you’re committed, but they’ll also weigh other factors like your financing strength, contingencies, and closing timeline.

What Affects the Amount?

Several factors can influence how much earnest money feels right:

• Competition: Multiple-offer situations often encourage higher deposits.
  
  
• Price point: Higher home prices generally mean larger deposits.
  
  
• Property type: Homes, condos, and townhomes can all have different norms.
  
  
• Contingencies: Offers with more buyer protections (like inspections or financing clauses) may need stronger earnest money to balance the terms.
  
  
• New construction: Builders may require larger or phased deposits with stricter deadlines.
  
  

When Is Earnest Money Due?

In Minnesota purchase agreements, earnest money is due within 2 business days of an accepted offer.

Plan ahead so your funds are easy to access. Transfers between accounts can take time, and earnest money is often required quickly after signing.

Also, earnest money will need to be delivered to the the selling agent's brokerage trust account or sometimes the title company.

Keeping Your Earnest Money Safe

Earnest money only becomes stressful when you’re unclear about when it’s refundable. A few essential practices help protect it:

• Confirm deadlines and get written extensions if needed.
  
  
• Use clear inspection, appraisal, and financing contingencies.
  
  
• Only send funds to the escrow holder listed in your purchase agreement.
  
  
• Keep all receipts and written communication throughout the process.
  
  

Although earnest money isn’t required by Minnesota law, it’s expected in nearly every transaction. Clear paperwork and good organization help avoid surprises.

Seasonal Trends in the Twin Cities

Earnest money norms can shift slightly throughout the year.

Spring and early summer tend to be the busiest and most competitive times, which can push deposits higher. Late fall and winter usually bring a calmer market where standard 1%–2% deposits feel strong enough.

Minnesota’s older housing stock also means inspections play a big role in your overall offer strategy. Work with your agent to balance earnest money, contingencies, and confidence when you write your offer.

Related Reading 

• Minnesota Homebuyer Costs Explained: What You’ll Pay Before Closing
  
  
  
• The 3 S’s of Home Inspections Every Minnesota Buyer Should Know
  
  
  
• Confident Buyer Blueprint: A Smarter Way to Buy a Home in Minnesota
  
  
  
• Creative Ways To Afford a Home in Today’s Minnesota Market
  
  
  
• 5 Simple Ways To Save for a Down Payment on a Home in Minnesota

If you’re just starting the home-buying process and want a clear game plan before you fall in love with a house, we can help.

Connect with First Choice Realty Solutions for a no-pressure buyer strategy chat. You’ll get a simple Blueprint for earnest money, timelines, contingencies, and how to position your offer in the Twin Cities, so you feel prepared well before it’s time to write one.