Earnest Money In Nashua: What Buyers Should Know

Are you getting ready to make an offer on a home in Nashua? If so, you will likely hear about earnest money and wonder how much to put down and whether it is safe. You want to be competitive without taking on more risk than you need to. In this guide, you will learn how earnest money works in Southern New Hampshire, what is typical in Nashua, and how to protect your deposit while writing a strong offer. Let’s dive in.

What earnest money is

Earnest money is a deposit you give after your offer is accepted. It shows the seller you are serious about buying and is credited back to you at closing. The amount and rules for the deposit are set by your purchase and sale agreement.

The deposit is placed in an escrow or trust account. In New Hampshire, that is often a title or closing company, or an attorney’s escrow account. Some brokerages may hold deposits but must follow state trust-account rules. The contract controls how the money is handled and what happens if a dispute arises.

What’s typical in Nashua

Nashua sits in the Southern New Hampshire and Boston commuter region, where demand is often strong. That can influence deposit sizes and how competitive your offer needs to be. While there is no fixed rule, many buyers offer several thousand dollars or roughly 1 percent to 3 percent of the purchase price.

Local norms change with market conditions and price tier. A starter condo and a higher-end single-family may see different expectations. Ask your agent to review recent accepted offers in your price range to confirm what is common the week you are writing.

Who holds the deposit in NH

In many New Hampshire transactions, title companies and attorneys hold earnest money in escrow. If a brokerage holds it, the funds must be placed in a proper trust account under state rules. Your contract should name the escrow holder and describe deposit timing, notice requirements, and dispute steps.

When your deposit is refundable

Your deposit protection depends on the exact wording of your contract and whether you meet deadlines. Common buyer protections include:

• Home inspection contingency. If you cancel within the inspection period according to the contract, your deposit is typically refundable.
• Financing or mortgage contingency. If you cannot obtain financing under agreed terms and properly terminate within the timeframe, the deposit is generally refundable.
• Appraisal contingency. If the appraisal comes in low and you follow the contract’s process to cancel or renegotiate, your deposit may be refundable.
• Title contingency. If title defects cannot be resolved per the contract, you may be able to cancel and receive the deposit back.
• Sale-of-home contingency. Protection depends on the exact language and deadlines in the agreement.

The most important points are deadlines and written notice. You usually must deliver written cancellation or other notices by specific dates. Keep copies of all notices, emails, and addenda.

When you could lose it

If you default outside of your contingencies, the seller may be entitled to keep your earnest money. Common examples include missing a deadline, changing your mind after contingencies expire, failing to deliver funds at closing, or improperly terminating the contract.

Some contracts include a liquidated damages clause. This allows the seller to keep the earnest money as full damages if the buyer defaults. Whether a clause applies depends on the contract language and state law.

If there is a dispute, your contract will outline next steps. That can include mutual agreement, mediation or arbitration, court action, or an interpleader by the escrow holder.

Build a strong, safe offer

In a competitive Nashua submarket, higher deposits or shorter contingency periods can help your offer stand out. At the same time, these steps increase your risk if something goes wrong. Work with your agent to balance strength and protection.

Here are buyer-friendly contract elements to consider:

• Clear inspection period. Specify how many days you have, how to request repairs or cancel, and what happens if you cannot agree on repairs.
• Well-defined financing contingency. Set deadlines and what proof is needed if your lender denies financing under the agreed terms.
• Appraisal contingency options. Give yourself the right to renegotiate or cancel if the appraisal is too low.
• Title contingency. Require marketable title and outline remedies if defects cannot be cleared.
• Explicit escrow instructions. Name who holds the funds, when they are deposited, and how disputes are handled.

Strategy options

• Conservative approach. Moderate earnest money, full contingencies, and standard timeframes. This reduces your risk but may be less competitive in a fast-moving neighborhood.
• Aggressive approach. Larger earnest money, shorter windows, or waiving certain contingencies. This can win in multiple-offer situations, but it raises the chance of forfeiting your deposit if the deal fails.

Steps for deposit delivery

Before you transfer funds, confirm the escrow holder named in the signed contract. Follow the holder’s payment instructions exactly and watch for fraud. If paying by check, deliver in person or use a trackable service.

Once delivered, get a dated receipt that states the amount, who paid it, and the escrow account details. Keep copies of the purchase and sale agreement and any notices or addenda. Save lender messages, inspection reports, and all emails in case questions come up.

How market conditions affect deposits

In a seller-leaning moment with tight inventory, sellers often expect larger deposits and shorter contingency periods. In a buyer-leaning stretch with more inventory, you may see smaller deposits or longer timelines accepted. Conditions can vary by neighborhood and price band within Hillsborough County.

The right number for you depends on the property, competition that week, and your comfort with risk. Your agent can show you recent examples to help you choose a deposit amount and timelines that fit your goals.

Avoid common mistakes

• Sending money before the contract names the escrow holder and timing. The who and when should appear in writing.
• Missing notice deadlines by a day. A missed deadline can turn a refundable deposit into a nonrefundable one.
• Waiving contingencies without a plan. If you shorten or waive inspection, appraisal, or financing protections, understand exactly what that means for your deposit.
• Assuming verbal agreements are enough. Use written addenda and keep receipts for every step.

If a dispute happens

Start by reviewing the contract language with your agent. Confirm which contingency deadlines applied and whether written notices were sent on time. Then consult the escrow holder and, if needed, an attorney to evaluate the next steps described in your agreement.

Gather your records. Save the signed contract, all addenda, inspection reports, lender communications, and notice emails. Organized documentation can speed up resolution.

The bottom line for Nashua buyers

Earnest money helps your offer look serious and gives the seller confidence while the home is off the market. With clear contingencies, firm timelines, and good documentation, your deposit can be both competitive and well protected. The right amount and strategy depend on the property, the week’s competition, and your personal risk tolerance.

If you want help shaping a strong, safe offer in Nashua or nearby Southern New Hampshire towns, connect with the local team that does this every day. Reach out to Pat Clancey Realty to discuss your goals and get neighborhood-level guidance.

FAQs

How much earnest money should a Nashua buyer offer?

• There is no fixed rule. Many buyers offer several thousand dollars or roughly 1 percent to 3 percent of the purchase price, adjusted for current local competition and price tier.

Is my deposit refundable if I cancel after inspection?

• If your contract includes an inspection contingency and you cancel within that period according to the terms, the deposit is typically refundable, provided you deliver timely written notice.

Who usually holds earnest money in New Hampshire?

• Title and closing companies or attorneys commonly hold funds in escrow; some brokerages may hold deposits but must follow state trust-account rules.

Can a seller keep my earnest money if I change my mind?

• If you terminate outside your contingency protections or miss deadlines, the seller may be entitled to keep the deposit, subject to the contract and any liquidated damages clause.

Is earnest money the same as a down payment?

• Not exactly. Earnest money is credited toward your purchase at closing, while your down payment and closing costs are separate amounts.

What happens if there is an earnest money dispute in Nashua?

• The contract usually outlines dispute steps that may include mutual agreement, mediation or arbitration, court action, or an interpleader by the escrow holder.