Earnest Money in Wisconsin: North Shore Guide

You finally found a home you love in Whitefish Bay, and the seller is asking for earnest money. How much should you offer, when is it due, and what happens if the deal falls through? These are smart questions to ask before you write an offer. In this guide, you’ll learn how earnest money works in Wisconsin, what is typical on the North Shore, and how to structure a strong offer without taking on unnecessary risk. Let’s dive in.

What earnest money is

Earnest money is a buyer’s good‑faith deposit tied to the purchase agreement. It shows the seller you are serious and is held in a trust or escrow account until closing. If the sale closes, the deposit is credited toward your down payment or closing costs. If you end the deal under a valid contract contingency and meet the notice rules, the deposit is typically returned to you.

Because it is part of the contract, refundability depends on the contingency language and remedies in your offer. A larger deposit can make your offer stand out, but it also increases what you could lose if you miss deadlines or default.

How it works in Wisconsin offers

Most Wisconsin transactions use the WB-11 Residential Offer to Purchase and related forms. Your offer will identify who holds the funds, such as the listing broker, your broker, or a title or escrow company. The form also sets the deadline to deliver the deposit, often within a few business days after acceptance.

Contingencies drive refundability. Common clauses include inspection, financing, appraisal, title, and sometimes the sale of your current home. If you terminate within a contingency window and follow the written notice steps in the contract, you generally get your earnest money back.

Seller remedies for buyer default are defined in the contract. Some agreements allow a seller to keep the earnest money as liquidated damages. Others allow the seller to pursue additional damages. The specific remedy depends on what is selected in your signed offer.

Wisconsin brokers who hold client funds must keep them in trust accounts and provide proper handling. Ask for a receipt or confirmation that your deposit was received and placed in the named trust or escrow account.

How much in Whitefish Bay

There is no single rule, but many industry sources describe earnest money as commonly around 1% to 2% of the purchase price, with variations by market conditions. In competitive settings, buyers sometimes go higher.

Here are simple, North Shore–style examples to frame expectations:

• Example A, list price $350,000:
  • Typical: about 1% or a flat amount, such as $2,000 to $5,000.
  • Competitive: 1.5% to 2% ($5,250 to $7,000) or a faster deposit timing.
• Example B, list price $550,000:
  • Typical: around 1% ($5,500) or a range like $3,000 to $10,000.
  • Competitive: about 2% ($11,000) if multiple offers are expected.
• Example C, list price $900,000:
  • Typical: 1% to 2% ($9,000 to $18,000), sometimes a higher flat number for standout listings.

Local norms shift with inventory and demand. Your agent can help you tailor the size of your deposit to the competition on a specific Whitefish Bay property.

Key timelines and refundability

• Deposit delivery: Often within 24 to 72 hours after acceptance, based on the deadline written in your offer.
• Inspection period: Commonly 5 to 10 business days, though you can negotiate shorter. Shorter timelines can strengthen your offer but reduce your time for due diligence.
• Financing commitment: Frequently 21 to 30 days, with appraisal timing set by your lender’s process.

How refunds work in practice:

• Refundable when you follow the contract: If you terminate within the inspection, financing, title, or other contingency period and deliver the required written notice on time, the deposit is generally returned to you. If the seller cannot provide marketable title or breaches the agreement, refund may also apply.
• At risk if you miss deadlines: If you do not meet contractual dates, fail to deliver required notices, or default without a termination right, the seller may be able to keep your deposit and may have other remedies based on the contract.

Make your offer competitive and safe

You can write a stronger offer without taking on more risk than you intend. Consider these levers:

• Earnest money size: A higher deposit signals commitment. Pair it with clear contingency language you can meet.
• Deposit timing: Offering to deliver funds quickly after acceptance can help your offer stand out.
• Contingency windows: Shorter inspection or financing periods reduce uncertainty for the seller. Confirm you can meet them before you tighten timelines.
• Financing strength: Provide a solid preapproval and be ready to move quickly on appraisal.
• Escalation clause: If appropriate, use an escalation clause with a clear cap, and consider aligning your deposit amount with the higher price.
• Avoid unnecessary waivers: Waiving protections or agreeing to non-refundable funds increases exposure. Only do this when you fully understand the risk and have a plan.

Step-by-step checklist for buyers

Before you write an offer:

• Get a lender preapproval and verify you have liquid funds for the deposit.
• Decide on a deposit amount and why it fits the property and competition.

When preparing the offer:

• Confirm who will hold the funds and the exact delivery deadline in your WB-11.
• Set inspection and financing dates you can meet, and define how notices must be delivered.
• Choose a percentage or a flat-dollar deposit.

After acceptance:

• Deliver your deposit by the deadline and request a receipt.
• Track inspection, financing, and other contingency dates on a shared calendar.
• If you plan to terminate, send the written notice on time and in the method the contract requires.
• If you proceed, confirm your earnest money credit on your closing statement.

If issues come up:

• Communicate with your agent and the escrow holder quickly.
• Refer to the contract’s notice and remedy sections if there is a dispute about refundability.

Protect your funds from wire fraud

Before sending any money, confirm wiring instructions directly with the title or escrow company using a trusted phone number. Be cautious of email or text messages that suggest last-minute changes. When in doubt, stop and verify. Keep your confirmation and receipt for your records.

Final thoughts

Earnest money is both a signal and a safeguard. In Whitefish Bay, a well-sized deposit, clear timelines, and strict attention to notices can help you write a competitive offer while preserving your protection. If you want a game plan tailored to the competition on a specific North Shore listing, connect with a local expert.

Ready to talk strategy for your next offer? Reach out to Brynn Woll to walk through deposit amounts, timelines, and a step-by-step plan that fits your goals.

FAQs

What is earnest money in a Wisconsin home purchase?

• It is a good‑faith deposit tied to your signed offer. If the deal closes, it is credited to you. If you end the deal under a valid contingency and give proper notice, it is typically refunded.

How soon do I have to deposit earnest money in Wisconsin?

• Your WB-11 offer sets the deadline. Many deals call for delivery within 24 to 72 hours after acceptance, but your contract controls the exact timing.

Is earnest money refundable under Wisconsin WB forms?

• Generally yes if you terminate within a contingency period and follow the contract’s written notice steps. If you default outside of those rights, the deposit may be at risk.

How much earnest money is typical in Whitefish Bay?

• Many buyers use about 1% to 2% of the price, with higher amounts in competitive situations. Your agent can help match your deposit to the property and market.

Who holds earnest money in a North Shore transaction?

• The offer names the holder, often the listing broker, buyer’s broker, or a title or escrow company, and the funds are kept in a trust or escrow account.

What happens if the deal falls through after deadlines?

• If you miss required dates or default without a termination right, the seller may keep the deposit and could have additional remedies, depending on the contract.

How can I strengthen my offer without risking my deposit?

• Consider a solid preapproval, quick but realistic timelines, and a meaningful deposit amount, while keeping key contingencies you can meet and follow precisely.