Wondering how much earnest money you need to buy a home in San Antonio? You are not alone. First‑time and relocating buyers often hear about earnest money and option money and are not sure what each one does. In this guide, you will learn how both work in Texas, what is typical in Bexar County, when funds are refundable, and how they apply at closing so you can write a confident, competitive offer. Let’s dive in.
Earnest money basics in Texas
Earnest money is a good‑faith deposit that shows you intend to buy the home. You deliver it after your contract becomes effective, and a neutral escrow holder keeps it until closing or termination. If you close, the deposit is credited toward your costs. If the deal ends, the contract controls who gets the funds.
Who holds the funds
Most San Antonio contracts name a title company as the escrow agent. Sometimes a broker or an escrow company holds the deposit if the contract allows it. The contract will list the escrow holder by name and address.
Delivery timing and receipts
Texas contracts commonly require delivery of earnest money within a few days of the effective date. Many buyers plan for delivery within three days, but you should verify the exact deadline on your current TREC form before you sign. Ask your agent and the title company for a receipt and keep it with your records.
When you might keep or lose it
If you terminate during an active option period according to the contract, your earnest money is typically returned to you. If you default after the option period or outside your contract rights, the seller may have remedies that include keeping the earnest money. If the seller defaults, you may be entitled to a return of the deposit and other remedies. Always review your contract and speak with your agent, and consult a Texas real estate attorney for complex disputes.
Option money vs earnest money
Option money is different from earnest money. In Texas, you can pay an option fee to get a short, unrestricted period to inspect and decide. During this option period, you can terminate for any reason by giving notice within the deadline.
- Option money is usually smaller than earnest money and is often non‑refundable.
- Option money typically goes to the seller. It is only credited at closing if your contract says so.
- Earnest money is held in escrow and is usually credited to you at closing, unless the contract provides otherwise due to a default or dispute.
Typical San Antonio amounts
Every offer is unique, but these ranges are common in San Antonio:
- Earnest money: $1,000 to $5,000 for many standard‑price homes, or about 1 to 2 percent of the purchase price. In hot markets, buyers sometimes offer more than 2 percent to stand out.
- Option money: often $100 to $300 for a short option period. In competitive situations, some buyers shorten or waive the option period instead of raising the option fee.
Amounts can vary by neighborhood, price, and market conditions. Cash buyers sometimes increase earnest money to strengthen their position. Older homes or properties with known issues may lead buyers to keep a longer option period rather than raise the deposit. Ask your agent to share recent San Antonio Board of REALTORS market trends for your price range.
Deadlines and how to pay
The option period start and end dates are set in the contract. You must give written notice of termination before the option period expires to keep your right to an earnest money refund.
Most buyers deliver earnest money by wire transfer or cashier’s check to the named title company. Option money is often paid directly to the seller, or per the contract. Always confirm exact instructions with the listed escrow holder or seller’s agent.
- Get a receipt for each payment.
- Confirm the holder’s business hours. Late delivery can cause problems.
- Protect yourself from wire fraud. Call the title company at a verified phone number to confirm wiring instructions before you send funds.
How funds apply at closing
Your earnest money shows as a credit on your Closing Disclosure. It reduces the total funds you need to bring to closing.
Here is a simple example for illustration only: If you buy a $300,000 home and put down $3,000 in earnest money, you will see a $3,000 buyer credit on your closing statement. Your cash to close is reduced by that amount.
Option money is different. The seller often keeps it as payment for granting the option period. It is only credited to you at closing if your contract clearly says it will be applied.
Competitive offer checklist
Use this quick checklist to write a strong offer in San Antonio:
- Choose an earnest money amount that fits price, competition, and your comfort level. Many buyers use $1,000 to $5,000 or 1 to 2 percent of price.
- Set your option period and fee. Typical option money is $100 to $300. Shorten the period only if you can complete inspections quickly.
- Confirm delivery deadlines. Plan to deliver both payments within the contract’s timelines and get receipts.
- Name a reputable local title company in the contract.
- Include a strong pre‑approval letter and review financing timelines with your agent.
- Track your dates. Know your option deadline and any financing or appraisal dates before you sign.
- Before closing, confirm your earnest money credit appears on the Closing Disclosure and verify your final funds to close with the title company.
Local tips and timing
Local practices can vary by listing and title company. Some title offices post funds the same day, while others need an extra business day to confirm. Ask the listing agent what the seller expects for delivery and proof of funds. Clear communication and quick delivery help your offer look organized and reliable.
Work with a trusted local guide
Buying in a new city can feel complex, but you do not have to figure it out alone. If you want a calm, step‑by‑step plan for earnest money, option periods, inspections, and closing, you will find it here. For first‑time buyers, relocating families, and seniors planning a thoughtful move, Joanie Rish brings decades of San Antonio experience and a concierge process that keeps you informed and protected.
FAQs
What is earnest money in Texas home buying?
- It is a good‑faith deposit you deliver after your contract is effective, held by a neutral escrow agent and usually credited toward your costs at closing.
How is option money different from earnest money?
- Option money buys you a short period to terminate for any reason and is usually non‑refundable, while earnest money is held in escrow and may be refunded or forfeited based on the contract.
How much earnest money is typical in San Antonio?
- Many buyers offer $1,000 to $5,000 or about 1 to 2 percent of the price, with higher amounts in competitive situations.
When do I need to deliver earnest money in Texas?
- Texas contracts commonly require delivery within a few days of the effective date. Check your current TREC form for the exact deadline and get a receipt.
Who holds my earnest money during the transaction?
- Most San Antonio purchases name a title company as the escrow agent, though a broker or escrow company may hold it if the contract allows.
Will my earnest money be credited at closing?
- Yes, it typically appears as a buyer credit on your Closing Disclosure and reduces your cash to close.
Is option money credited at closing in San Antonio?
- Only if your contract says so. Many sellers keep the option fee since it compensates them for the option period.
What happens if there is a dispute over the deposit?
- The escrow agent usually holds funds until both parties agree in writing or a court orders release. Consult your agent, and involve a Texas real estate attorney for complex matters.
