how much earnest money should i actually put down on my offer

Cormac, there really isn't a set rule for earnest-money amounts. Around 1% is a reasonable starting point, and your agent's recommendation should reflect what's typical in the Sioux Falls market. In a competitive situation, increasing the deposit can make your offer look stronger, but I wouldn't put down more cash simply for appearances if it makes you uncomfortable financially. More earnest money also means more money potentially involved if there's a dispute over a failed transaction. The bigger issue is making sure your financing, inspection, appraisal, and other contingencies are clearly written so you understand when your earnest money is protected. South Dakota requires the purchase agreement to spell out how earnest money is handled, and if a transaction doesn't close, releasing those funds can require a written agreement from both buyer and seller. So yes, it depends. Put down enough to demonstrate you're serious, but not more than you can comfortably have tied up until closing..

Cormac, here is the thing that took me years to say plainly to buyers: the size of your deposit almost never decides who wins the house. What decides your risk is how quickly that deposit stops being refundable. Your earnest money is protected by your contingencies, not by its size. A $3,500 deposit with a sloppy 21-day inspection period is more exposed than a $10,500 deposit with a tight, clean 10-day one, because what puts your money at risk is the calendar, not the number. So the question to bring to your agent is not "how much," it is "on what date does this money become non-refundable, and what has to be finished before then." On the number itself: 1% to 3% is the standard range nationally. In genuinely hot metros with multiple offers, 3% to 5% shows up. Sioux Falls is not San Jose. If your agent knows the local market and says 1% is customary there, that is not a weak offer, it is a normal one. Ask her one specific question to check it: on the last few competitive listings she was involved in, what did the winning offer put down. That is a real data point instead of a rule of thumb. If you want to look strong without tying up cash you would rather keep liquid, these work better than a bigger check: - Shorten your contingency periods by a few days. Sellers read this as certainty, and it costs you nothing if your lender is actually ready. - Offer a smaller deposit now and a written increase after your contingencies are removed. That tells the seller you are serious about closing while keeping your exposure low during the risky part. - Bring a fully underwritten preapproval rather than a prequalification letter. Most listing agents will take that over an extra one percent every single time, because it removes the thing that actually kills deals. Two mechanical points people get wrong. Your deposit should go to a neutral escrow or title company, or into the listing brokerage's trust account. Never directly to the seller. And confirm in writing who releases it and on what terms if the deal dies, because a seller who will not sign a release can tie up your money long after the contract is dead. Last piece, and the reason the answer is not the same everywhere. What a seller can actually keep if you default is set by your state's law and your contract, not by the deposit amount. California, for example, has a specific statute for one to four unit homes the buyer intends to occupy: a liquidated damages clause at or below 3% of the purchase price is presumed valid, above 3% the seller has to prove it was reasonable, and the clause only applies if both sides separately initialed it. South Dakota does not work that way, and I am not going to pretend I know your state's rule. So ask your agent directly: under this contract, if I walk after contingencies, what exactly can the seller keep. Get the answer before you sign, not after. I am a real estate professional, not an attorney or a lender. My name is Zoltan Peresztegi and I write offers in the South Bay and on the Palos Verdes Peninsula in Los Angeles County, where 3% deposits are routine and the liquidated damages clause matters a great deal. Different market, same principle: protect the timeline, not the number. Zoltan

Cormac, there’s no set rule, but 1% is a very common starting point. In a competitive situation, offering more earnest money can strengthen your offer without increasing the purchase price. Just make sure you understand the inspection, financing and appraisal contingencies, because those determine when your earnest money is protected and when you could potentially lose it.

Cormac, there is no blanket answer to this, it depends on purchase price, loan type, available funds, etc. Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States