Earnest Money in Virginia: What Hampton Buyers Should Know
January 22, 2026
January 22, 2026
Buying in Hampton and wondering how much earnest money you need to put down? You are not alone. Between first-time buyers and military relocations, questions about deposits come up in almost every offer. In this guide, you will learn what earnest money is, how much is typical in Hampton, how Virginia’s contract protects your funds, and what to do if a refund is delayed. Let’s dive in.
Earnest money is a cash deposit you include with your offer to show the seller you are serious. It is separate from your down payment and closing costs, though it usually gets applied to one of those at closing. The amount and the rules for holding and releasing the deposit are written into your purchase agreement.
In Virginia, earnest money is normally held by a third party in escrow. That can be a title company, settlement agent, an attorney’s trust account, or sometimes the listing brokerage if permitted and properly licensed. These escrow holders keep the funds in a dedicated account and follow the contract’s instructions for disbursement.
Hampton is part of the Hampton Roads market, where competitiveness can shift by neighborhood, price point, and season. For many homes, a common starting point is 1,000 to 5,000 dollars or about 1 percent of the purchase price. For mid or higher price points, 1 to 2 percent is a helpful benchmark. In multiple-offer situations, some buyers increase the deposit to stand out.
If you are using a VA loan, sellers still usually expect an earnest money deposit even if your down payment is zero. The deposit simply shows good faith and helps your offer compete. Choose a number you can comfortably have tied up until your contingencies expire.
Your purchase agreement identifies how much you will deposit, who will hold it, when it is due, and what happens if either party defaults. The contract also sets out remedies and how the escrow agent can release funds. The protections you choose matter as much as the amount.
If your contract includes an inspection or due diligence contingency, you can cancel within that window and typically receive your earnest money back. You must follow the exact timing and notice steps written in the contract. Keep all notices in writing and save delivery proof.
If you cannot secure loan approval within the timeframe in the contract, a financing contingency allows you to terminate and protect your deposit. Work closely with your lender to set realistic dates. Provide timely written notice if financing falls through.
If the home does not appraise at the purchase price and you cannot reach new terms, an appraisal contingency usually lets you cancel and receive your deposit back. VA buyers should ensure the VA appraisal and loan language are included. Coordinate timing with your lender so the appraisal window matches your contingency dates.
If title defects cannot be cleared within the contract’s timeline, a title contingency lets you cancel and receive a refund of your earnest money. Make sure any survey or title items and deadlines are clear in writing.
Contingencies only protect you if you meet the deadlines and send notice the way the contract requires. Missed dates are a common reason deposits get disputed. Put every date on your calendar, use email for a time-stamped record, and keep copies of all letters and receipts.
Some Virginia areas use a separate due diligence fee paid to the seller. If used, it may be non-refundable once the period expires, which is different from escrowed earnest money. Customs vary by neighborhood, so confirm what applies in Hampton and have your agent explain what is refundable and what is not.
When you validly terminate under a contingency and both sides sign the release, the escrow holder will process your refund. Actual timing depends on the escrow company’s procedures and the contract terms, and it can take several business days to post back to your account. There is no single statewide rule that requires refunds within a set number of days.
Disputes usually happen when a buyer misses a deadline, a seller claims a breach, or both sides send conflicting instructions. In those cases, the escrow agent may hold funds until there is a mutual release or a court order. The escrow holder can also file an interpleader so a court can decide.
To speed things up, keep copies of the signed contract, your deposit receipt, the escrow agent’s contact information, and all written notices with time stamps. If a release stalls, you can request a written status from the escrow holder. For complex disputes, consider consulting a Virginia real estate attorney.
Earnest money is customary in Hampton even with a VA loan. Keep your deposit proportional to what you can comfortably hold in escrow through the contingency period. Make sure your offer includes explicit VA loan and appraisal language, and line up your Certificate of Eligibility early. Ask your lender for realistic timelines so your contract dates are achievable.
A smart earnest money strategy balances competitiveness with protection. You want a strong offer that still safeguards your deposit if something does not go as planned. If you would like help sizing your deposit, structuring contingencies, and managing deadlines, connect with Kristie Weaver. She will guide you step by step and help you move forward with confidence.
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