Earnest Money in Massachusetts vs New Hampshire: What Buyers Need to Know
What is earnest money? How much earnest money in Mass vs NH — 5% typical in Massachusetts, around 2% in New Hampshire. Deposit guide from top selling Massachusetts and New Hampshire Agent Chris Doherty.
When you make an offer on a home, the seller wants to know one thing: are you serious? That's what earnest money is for. It's your good-faith deposit — real money you put up front to show the seller you're committed to the deal. It gets credited toward your down payment at closing, so it's not an extra cost. But the amount, the timing, and the rules work differently in Massachusetts vs New Hampshire, and buyers working both states need to know the difference.</p>
What Earnest Money Actually Does Earnest money serves two purposes. First, it signals to the seller that you're a real buyer, not someone kicking tires — a stronger deposit can make your offer stand out in a competitive situation. Second, it gives the seller some protection: if you walk away from the deal for no valid reason, they may be entitled to keep it. That second part is why understanding your contingencies matters as much as the dollar amount.
The deposit is typically held in an escrow account — usually the listing broker's — from the time your offer is accepted until closing. It doesn't go to the seller directly, and it doesn't disappear. At closing, it's applied to what you owe.
Earnest Money in Massachusetts: 5% Is Typical
In Massachusetts, the standard earnest money deposit is around <strong>5% of the purchase price</strong>. On a $500,000 home, that's $25,000. On $700,000, it's $35,000.
It's usually structured in two parts. When you submit your offer, you put down an initial deposit — often $1,000 to $5,000 — with the signed offer to purchase. Then when you sign the Purchase & Sale agreement (typically 7–14 days later), you bring the deposit up to the full 5%. Your agent and attorney will spell out the exact amounts and deadlines in the paperwork.
Five percent is the norm, not the law. In a bidding war, some buyers offer more
Check out this article next
