Buying a home in Westmont comes with a lot of moving parts, and earnest money is often one of the least familiar. For many first-time and budget-conscious buyers, questions about deposits, timing, and contingencies naturally come up early in the process.
This guide explains how earnest money works in Illinois, what deposit amounts are common in the western suburbs, and how contract terms and deadlines shape what happens to your deposit when buying a home in Westmont.
Earnest Money Basics
Earnest money is a good-faith deposit you provide after a seller accepts your offer. It signals that you are serious about moving forward with the purchase.
It is not your down payment, but it is typically applied toward your final cash to close at settlement.
Why Sellers Ask for Earnest Money
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It shows commitment and helps sellers feel comfortable taking the home off the market
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It provides a defined financial remedy if a buyer does not perform under the contract
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It can strengthen an offer in competitive situations
Typical Earnest Money Amounts in Westmont
In many Chicago-area suburbs, buyers offer either a flat amount or a percentage of the purchase price.
Illustrative ranges (not rules):
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About $1,000–$5,000 for lower-priced homes
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Roughly 1%–2% of the purchase price for mid-priced homes
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In competitive, multiple-offer situations, some buyers offer 2%–3% or more
The appropriate amount depends on the price point, inventory, and seller expectations for the specific property.
When Earnest Money Is Paid and How It’s Used
Earnest money is usually delivered shortly after both parties sign the contract. The funds are held in escrow until closing or termination.
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If the sale closes, the deposit is credited toward your cash to close
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If the transaction ends under a valid contingency, the deposit is typically returned
How Earnest Money Is Handled in Illinois
Illinois uses escrow to hold buyer deposits. Your purchase agreement names the escrow holder and specifies when the funds are due.
Common Escrow Holders
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A title or closing company
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A broker’s client trust account
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An attorney or agreed escrow company
Illinois-licensed brokers are required to follow strict trust-account rules. Buyers should always confirm who is holding the deposit and request written proof of receipt.
Contract Terms That Affect Your Deposit
Your purchase contract outlines how earnest money is handled at closing and what happens if the transaction does not move forward. This is where contingencies and deadlines matter.
Inspection Contingency
Allows time to inspect the home and negotiate repairs or credits. If no agreement is reached, buyers can typically cancel within the inspection period and receive their deposit back.
Financing Contingency
Protects buyers if financing is denied under the terms described in the contract. Buyers must apply in good faith and provide notice within the stated timeframe.
Appraisal Contingency
If the appraisal comes in below the contract price and the parties cannot reach a solution, this contingency may allow the buyer to cancel and recover the deposit.
Title Contingency
If the seller cannot deliver clear title within the agreed timeline, buyers are usually able to terminate and receive their deposit back.
Home Sale Contingency
For buyers who need to sell another home first, this contingency may apply, subject to the contract terms. Sellers often limit or restrict it in competitive markets.
Sizing Your Deposit in Westmont
Earnest money is a strategic part of an offer. It should reflect both market conditions and your personal comfort level.
Examples (illustrative only):
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Conservative scenario:
$350,000 home with a $1,000–$2,500 deposit and standard contingencies -
Typical suburban scenario:
$400,000 home with approximately 1% earnest money and a 7–10 day inspection period -
Competitive scenario:
$400,000 home with 2%–3% earnest money, a shorter inspection window, and strong financing documentation
An experienced agent can help you adjust the deposit to fit the specific home and level of competition.
When a Transaction Doesn’t Move Forward
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If a buyer cancels under a valid contingency and within the deadline, the deposit is usually returned
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If deadlines are missed or the buyer defaults, the contract may allow the seller to retain the deposit as liquidated damages
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If the seller fails to perform, buyers generally recover their earnest money and may have other remedies under the contract
If there is a disagreement, escrow holders typically require written instructions from both parties or a court order before releasing funds.
Westmont Market Context
Westmont is located in DuPage County and includes a mix of single-family homes, townhomes, and condominiums. Market conditions vary by season, price range, and neighborhood pocket.
In more balanced conditions, modest deposits are common. In tighter markets, sellers often expect larger earnest money, quicker inspections, and fewer contingencies. Deposit strategy should be tailored to the specific home rather than the market in general.
Final Thoughts for Westmont Buyers
Earnest money is meant to show commitment, not create unnecessary uncertainty. When buyers understand how the process works and how contracts govern deposit handling, earnest money becomes a predictable part of the purchase rather than a source of stress.
If you’re buying a home in Westmont or nearby DuPage County suburbs and want clear guidance on structuring a strong offer, Rob Brannigan provides steady, practical support focused on clarity, timing, and informed decision-making.
