Are you wondering how much earnest money to put down on a Mequon home and what happens to it if plans change? You are not alone. Buyers across Ozaukee County ask about deposit size, deadlines, and when funds are refundable. In this guide, you will learn how earnest money works in Wisconsin, what is typical in Mequon, and simple steps to protect your deposit. Let’s dive in.
What earnest money means in Wisconsin
Earnest money is your good‑faith deposit that accompanies an accepted offer. It shows commitment and, if you close, it is applied to your down payment or closing costs.
In Wisconsin, the purchase contract controls how earnest money is handled. Most residential offers use the Wisconsin REALTORS Association WB‑11 Offer to Purchase. The contract sets the amount, where the funds are held, and when they are returned or forfeited.
Your deposit is held in an escrow or trust account. The escrow agent is named in the contract and is often the listing broker, the buyer’s broker, a title company, or an attorney trust account. Always request a written receipt showing the amount, the escrow holder, and the date of deposit.
How much is typical in Mequon
Deposit size depends on price and competition. In quieter situations, many buyers use a flat amount. In competitive North Shore offers, deposits often scale as a percentage of price.
- Modestly priced homes or low‑competition listings: about $1,000 to $3,000 is common.
- Mid‑range Ozaukee County purchases: about $2,000 to $10,000, depending on price and comfort level.
- Higher‑priced Mequon and North Shore homes: many buyers use 1 to 3 percent of the purchase price.
Examples to frame expectations:
- Example A: For a $350,000 Ozaukee County home, a typical range is $2,000 to $5,000.
- Example B: For an $800,000 Mequon lake‑area property, a common range is $8,000 to $24,000.
Market pressure matters. When sellers receive multiple offers, they often expect larger deposits and shorter contingency timelines. In slower periods, smaller deposits and longer timelines may be accepted. Ask your local agent for current norms before you write.
What affects your deposit size
- Purchase price and seller expectations
- How competitive the listing is right now
- Whether you are waiving or shortening contingencies
- Your financing strength and appraisal risk
Timelines and key contingencies
Your contract sets deadlines that start when the offer is accepted. The deposit deadline is typically within 1 to 3 business days after acceptance. Make sure the escrow agent and deadline are clearly written in the offer.
Common contingencies and typical windows:
- Home inspection: often 7 to 10 calendar days, sometimes 3 to 7 days in competitive situations.
- Financing commitment: commonly 21 to 45 days, depending on loan type and lender.
- Appraisal: usually tied to the financing timeline, with a few days to respond after receipt.
- Title review: often 10 to 30 days based on contract language and who orders title work.
- Sale‑of‑home: sometimes 30 to 60 days, though many sellers decline this in multiple‑offer settings.
If you terminate within a contingency window and follow the contract’s notice rules, your earnest money is generally refundable. If you remove contingencies or miss a deadline, then back out without a contractual reason, you risk losing the deposit. Many contracts state that time is of the essence, so on‑time notices are essential.
Refunds, disputes, and disbursement
The contract controls how funds are disbursed. Common outcomes include:
- Buyer refund: The seller breaches the contract, you properly cancel under a contingency within the deadline, or both parties sign a mutual cancellation returning funds to the buyer.
- Seller retains funds: The buyer defaults after contingencies are removed or after deadlines pass, and the seller elects forfeiture consistent with the contract.
If there is a dispute, the escrow agent will hold funds until receiving mutual written instructions, a court order, or other directions allowed by the contract. Many Wisconsin forms allow the escrow holder to deposit funds with the court through an interpleader process if parties cannot agree. To protect your rights, follow the termination steps in your contract exactly and keep proof of delivery.
How your deposit moves
- You and the seller accept an offer that names the escrow agent and deposit deadline.
- You deliver funds by the deadline and get a written receipt.
- The escrow agent holds the deposit in a trust account.
- If you close, the deposit is applied to your down payment or closing costs.
- If you cancel under a valid contingency and send proper notice, the escrow agent returns the funds per the contract.
- If there is a dispute, funds are held until mutual release or other contract‑directed resolution.
Buyer checklist for Mequon
Before you write an offer
- Ask your agent for current Mequon norms on deposit size and timelines.
- Decide how much earnest money you are comfortable risking if you remove contingencies.
- Line up pre‑approval and have your inspector ready to go quickly.
What to include in your offer
- Exact earnest money amount, flat or percentage
- The named escrow agent who will hold funds
- Deposit deadline, for example within 2 business days after acceptance
- Clear contingency deadlines and notice instructions
- Disbursement and dispute language, including how releases are handled
At deposit time
- Get a dated receipt with the amount, the escrow holder, and the property reference.
- Confirm whether a broker trust account or title company will hold funds.
- Track all deadlines on a calendar and share them with your lender and agent.
If issues arise
- Send termination notices exactly as required and keep proof of delivery.
- If a seller claims forfeiture, ask your agent and attorney to review the contract and any dispute steps.
Smart negotiation tips
- First‑time buyers: consider a modest deposit and keep reasonable inspection and financing protections.
- Cash or move‑up buyers: larger deposits and shorter inspection windows can strengthen your offer, while keeping essential protections in place.
Mistakes to avoid
- Missing the deposit deadline
- Removing contingencies before you are ready
- Relying on verbal assurances without written confirmation
Local insight for Mequon buyers
In Mequon and the North Shore, desirable homes can draw multiple offers. Sellers may prefer deposits at the higher end of the typical range and shorter inspection periods, often 3 to 7 days. If you want to stay competitive without adding unnecessary risk, lean on your agent to right‑size the deposit, time the contingencies, and script clear notice language so you keep control of your funds if plans change.
Get tailored guidance
Your earnest money strategy should match the property, the market, and your comfort with risk. If you want a clear plan for Mequon or anywhere in Ozaukee County, connect with Kelton Hatton for local, one‑on‑one guidance.
FAQs
What is earnest money in a Wisconsin home purchase?
- It is a good‑faith deposit that accompanies an accepted offer and is applied to your down payment or closing costs if you close.
How much earnest money is typical for Mequon homes?
- Many buyers use $2,000 to $10,000 on mid‑range homes, while higher‑priced properties often see 1 to 3 percent of the purchase price.
When is earnest money due after offer acceptance in Wisconsin?
- The contract sets the deadline, commonly within 1 to 3 business days after acceptance, and names the escrow agent who will hold the funds.
Can I get my earnest money back if I cancel after inspection?
- If your inspection contingency allows cancellation and you give timely written notice as the contract requires, earnest money is generally refundable.
Who holds earnest money in Wisconsin real estate deals?
- The contract names the escrow holder, often the listing broker, buyer’s broker, a title company, or an attorney trust account.
What happens if the buyer and seller disagree about the deposit?
- The escrow agent usually holds funds until there is a mutual written release, a court order, or another contract‑directed solution such as interpleader.
