Making an offer on a home in Driggs? Your earnest money is one of the first signals to a seller that you are serious. It also sets the tone for deadlines, due diligence, and how protected you are if the deal changes. In this guide, you will learn what earnest money is, how much buyers in Teton Valley often put down, the Idaho timelines that matter, and what happens if things fall through. Let’s dive in.
What earnest money is
Earnest money is a good-faith deposit you submit with your offer to buy a property. If you close, the deposit is applied to your purchase price. If you do not, the contract controls whether you receive a refund or the seller keeps the funds.
Who holds it and how it works
In Idaho, a neutral third party usually holds the deposit. That is often a title or escrow company, and sometimes a brokerage trust account, as spelled out in your purchase agreement. The escrow holder releases funds only according to the written contract and any escrow instructions.
Earnest money is a contractual deposit, not a government fee. Idaho law does not set a required amount. Your offer defines the amount, the holder, and the terms for release.
How you pay it
Most buyers fund earnest money by wire transfer or cashier’s check. Personal checks are sometimes allowed, but many sellers and title companies prefer wires or cashier’s checks for speed and tracking. Always verify wiring instructions directly with the title or escrow company by phone to reduce fraud risk.
How much in Teton Valley
National norms and local realities
Across many U.S. markets, a common range is about 1 to 2 percent of the purchase price. On lower-priced homes, some buyers offer a flat $1,000 to $5,000. Treat those figures as a starting point. In competitive or higher-priced situations, buyers sometimes choose a larger deposit to strengthen the offer.
Teton Valley is a resort-adjacent, lifestyle market. In-demand listings near mountain amenities, ranch acreage, or homes with unique features can draw strong interest. In these cases, sellers may expect a larger deposit and quick proof of funds. Local expectations vary by price point, property type, and whether multiple offers are in play.
Strategy for competitive listings
If you are competing for a desirable Driggs property, consider two levers: the amount and the speed. A higher deposit and fast delivery can add confidence for a seller. That said, balance competitiveness with your risk tolerance and the protections in your contingencies. A local agent can help you calibrate the deposit to current norms and the specific property.
Idaho contingencies and timelines
Contingencies are clauses that let you cancel and recover your earnest money if certain conditions are not met within agreed deadlines. The purchase agreement spells out each contingency, the length of the period, and how to give notice.
Common contingencies to know
- Financing contingency: Time to secure a mortgage commitment, often about 21 to 30 days, depending on your lender.
- Inspection contingency: General home inspection and specialized checks. Seven to 14 days is common, but rural properties often need more time for well, septic, or soil tests.
- Appraisal contingency: Protects you if the lender’s appraisal comes in below the contract price. Timelines often track lender schedules, typically within 7 to 21 days.
- Title contingency: Time to review the title report and resolve issues. This window is often 7 to 14 days.
- HOA and document review: If the property has an HOA, expect a short period, often 3 to 7 days after receiving the documents.
Each contingency has a deadline. If a contingency is not satisfied, you must give proper written notice by the deadline for your refund rights to apply.
Typical deadlines in Idaho
While every contract is unique, here are common patterns:
- Earnest money deposit: Due within 1 to 3 business days after offer acceptance.
- Inspection and due diligence: Often 7 to 14 days, with longer windows for well and septic on rural homes.
- Financing and appraisal: Frequently 21 to 30 days from acceptance.
- Title work and closing: Many transactions close 21 to 45 days after acceptance, depending on lender and title processing.
In hot markets or all-cash purchases, these timelines can be shorter. Unique rural properties may require longer due diligence.
If the deal falls through
When a transaction does not close, your contract controls what happens to the deposit. The outcome usually fits one of two categories: refund or seller retention.
When you get a refund
- A valid contingency was not satisfied and you gave timely written notice.
- You and the seller signed a mutual termination with instructions to return the funds.
In these situations, the escrow holder follows the contract and returns the deposit to you.
When you could forfeit the deposit
- You default without a valid contingency or miss required deadlines.
- The purchase agreement contains a liquidated damages clause that allows the seller to keep earnest money if you breach the contract.
Whether a liquidated damages clause is enforceable depends on the contract language and state law. Many Idaho contracts include such clauses. Understand this section before you sign.
If there is a dispute
If you claim a contingency and the seller disputes it, the escrow holder may keep the funds in place until the parties provide joint written authorization or a final order. Many contracts call for mediation or arbitration before court. Negotiation and mutual release are common paths because litigation can be slow and costly.
Protect your deposit: a buyer checklist
- Work with a local buyer’s agent who knows Teton Valley contract norms.
- Get preapproved, not just prequalified, and be ready to provide proof of funds for the deposit.
- Read the contract carefully:
- Note every deadline, how notice must be delivered, and whether days are calendar or business.
- Confirm who is holding escrow and verify wiring instructions by phone.
- Negotiate realistic windows for rural checks:
- Build in time for well, septic, and any needed soil or perc tests.
- Document everything:
- Keep emails with timestamps and inspection reports for your files.
- If you need to cancel:
- Give written notice exactly as the contract requires and request written confirmation to release funds.
- If escrow declines to release funds:
- Ask for a written explanation, consult your agent, consider mediation, and speak with an Idaho real estate attorney if needed.
- Be careful when removing contingencies:
- Once you release a contingency, your ability to recover the deposit narrows unless the seller breaches.
Teton Valley pitfalls to plan for
- Remote property systems: Wells, septic, drain fields, and water rights require time and specialized inspections. Build adequate due diligence into your offer.
- Access and maintenance: Winter access, road maintenance agreements, and easements deserve attention during the inspection period.
- Out-of-area parties: Buyers and sellers from outside Idaho are common. Plan ahead for wiring, notarization, and time zone differences.
- Competitive pressure: Buyers coming from nearby Jackson Hole and other markets may use larger deposits or quicker timelines. Discuss a smart offer structure with a local agent.
- Seasonality: Spring and summer often bring more activity. Be ready to move quickly on funding and documents in peak months.
Who can help
- Title and escrow companies: They hold funds and follow the contract. Ask about their deposit methods and cutoff times.
- Idaho REALTORS forms: Most local transactions use standard forms that define contingency periods and notice steps.
- Idaho Real Estate Commission: Regulates licensees and offers consumer education on agency and escrow basics.
- Legal counsel: If a significant deposit is at stake or language is unclear, consult an Idaho real estate attorney.
Next steps
For questions about common earnest money amounts, typical contingency windows, or local negotiation norms in Driggs and the greater Teton Valley, contact Meagan Murtagh — she can explain current local practices, review contract language, and help you choose an earnest money strategy that matches your goals.
If you want tailored guidance on a specific property, connect with The McPeak Group. Our team can help you structure a competitive offer, set realistic timelines, and protect your deposit from day one.
FAQs
What is earnest money in Idaho real estate?
- It is a buyer’s good-faith deposit held by a neutral third party and applied to your purchase price at closing, with release controlled by your contract.
How much earnest money do Driggs buyers usually put down?
- Many buyers start around 1 to 2 percent of the price, or $1,000 to $5,000 on lower-priced homes, with larger deposits common in competitive Teton Valley listings.
When is earnest money due after offer acceptance in Teton Valley?
- It is often due within 1 to 3 business days, but your purchase agreement sets the exact deadline and the escrow holder.
Can I get my earnest money back after inspections in Idaho?
- Yes, if your inspection contingency is not satisfied and you give timely written notice as required by the contract, escrow typically returns the funds.
What happens if the appraisal comes in low in an Idaho purchase?
- If you have an appraisal contingency and the value is below the contract price, you can usually renegotiate or cancel with a refund if notice is timely and procedures are followed.
Who holds earnest money for Driggs transactions?
- A title or escrow company commonly holds the funds, and in some cases a brokerage trust account, as specified in your purchase agreement.
How can I avoid wiring fraud when sending my deposit?
- Call the title or escrow company using a verified phone number to confirm wiring instructions before you send funds, and re-verify any changes in writing.
