Making an offer in Pawleys Plantation comes with a quick, important choice: how much earnest money to put down and when to deliver it. You want to be competitive without risking more than you need. In this guide, you’ll learn what earnest money is, typical amounts for our area, when it’s due, how it’s held, and the contingencies that protect your deposit. Let’s dive in.
Earnest money basics in SC
Earnest money is a good-faith deposit that shows a seller you intend to buy. If you close, it is credited toward your purchase price or down payment. It can strengthen your offer and gives the seller limited protection if a buyer breaches the contract.
In South Carolina, the standard purchase contract widely used by agents includes fields for the initial deposit, any additional deposits, deadlines, the named escrow holder, and how funds are released or disputed. Brokers, attorneys, and title companies must handle trust funds promptly and document them carefully. Always rely on the signed contract for the final word on amounts, timing, and release terms.
How much to offer
There is no single “right” number, but common guidance uses either a flat amount or a percentage of the price. Many buyers start around 1% to 2% of the purchase price. In more competitive situations, some buyers choose 2% to 5% or a higher flat number to stand out. Amounts vary by property type, price point, and current market conditions.
In Pawleys Plantation, a gated golf and coastal community, sellers may see a range of deposit styles. Lower-priced condos or smaller homes may see deposits in the low thousands. Higher-priced homes often follow the percentage approach, with 1% to 2% as a typical starting point. If you want to strengthen an offer, you might pair a larger deposit with clear contingency timelines.
Simple examples
- $350,000 purchase price at 1%: $3,500 earnest money.
- $400,000 purchase price at 2%: $8,000 earnest money.
- $600,000 purchase price at 2%: $12,000 earnest money.
Your best move is to ask your agent what sellers in Pawleys Plantation are expecting right now and review recent comparable offers before choosing your number.
When earnest money is due
Most sellers expect the deposit to accompany the offer or to be delivered shortly after acceptance. Two common approaches are used:
- Initial deposit delivered with the offer.
- Initial deposit due within a short window after acceptance, often 24 to 72 hours. Your contract can also include an additional deposit later, such as after inspections.
The standard South Carolina contract allows you to set the initial deposit, any additional deposits, and the exact deadlines. Missing a deposit deadline can be a breach, so confirm dates and who will hold the funds before you sign.
Timing tips for Pawleys Plantation
- Have funds ready to move. Certified check or wire transfer is common at contract stage.
- Ask the escrow holder about wiring instructions and cut-off times before you send funds.
- Expect desirable homes to draw offers with deposits at offer or within 24 to 48 hours after acceptance.
Who holds your deposit
Earnest money is typically held by one of the following, as named in the contract:
- Title company or settlement agent.
- Real estate broker’s trust account.
- Closing attorney.
Best practices include getting a written receipt, confirming the escrow account details, and making sure the contract spells out the release and dispute process. You can also confirm whether the escrow account earns interest and who receives it.
Contingencies that protect you
Contingencies are your safety valves. If you cancel within a valid contingency and meet the contract’s notice rules and deadlines, your earnest money is typically refundable. Common protections include:
- Home inspection contingency. If major issues arise and you cannot reach agreement on repairs or credits within the inspection period, you can cancel.
- Financing contingency. If your lender cannot approve the loan by the deadline, you can cancel under this clause.
- Appraisal contingency. If the property appraises below the purchase price, you may renegotiate, bring cash to closing, or cancel.
- Title contingency. If a title problem cannot be resolved by closing, you can cancel.
- Sale-of-buyer’s-home contingency. Used case by case, depending on seller tolerance and deadlines.
- HOA and document review contingency. Especially important in gated communities like Pawleys Plantation. Review bylaws, budgets, assessments, and restrictions before removing this contingency.
How contingencies affect risk
- Cancel within a valid contingency and timeline: deposit is typically returned.
- Breach without a contingency: the seller may keep the earnest money or pursue other remedies, depending on the contract.
- Deadlines matter: provide notices on time and in writing, and track any contingency removals or extensions.
Avoiding disputes and releases
Most contracts require a mutual written release to return funds. If buyer and seller disagree, the escrow holder may keep the money in trust until there is a signed agreement, a court or dispute-resolution decision, or another method allowed by the contract. Many escrow holders will not release funds without a joint release. Clear instructions in your contract and timely communication help prevent stalemates.
Buyer checklist: prepare and protect
- Ask your agent what deposit range sellers expect in Pawleys Plantation right now.
- Prepare funds in advance and confirm acceptable payment methods with the escrow holder.
- Write the contract to clearly state:
- Initial earnest money amount.
- Who holds the funds.
- Deposit deadlines and any additional deposit date.
- Inspection, financing, appraisal, and document review deadlines.
- Release and dispute terms, including any mediation or arbitration.
- Use contingencies that fit the property and your risk tolerance. For gated communities, prioritize HOA and document review.
- Keep copies of all receipts and escrow communications. Request written confirmation when funds are deposited.
- To be more competitive, consider a higher deposit or shorter contingency periods, but balance this with your comfort level.
- Consult a South Carolina real estate attorney if the deposit is large or terms are complex.
Sample scenarios
- Scenario A — Conservative approach:
- Purchase price $350,000. Buyer offers 1% earnest money, $3,500, due within 48 hours of acceptance. Ten-day inspection period, 21-day financing approval. Inspection reveals major issues and parties cannot agree. Buyer cancels within the inspection period and gets the deposit back.
- Scenario B — Competitive approach:
- Purchase price $600,000. Buyer offers 2% earnest money, $12,000, delivered with the offer. Five-day inspection period, financing contingency with strong pre-approval. If the buyer fails to close for a reason not covered by a contingency, the seller may keep the deposit.
- Scenario C — HOA/document review focus:
- Buyer deposits $5,000 at contract. During HOA review, the buyer discovers a pending assessment and cancels within the document review period. The deposit is returned.
Local guidance and next steps
Every offer in Pawleys Plantation is unique. Your deposit amount, timing, and contingency mix should match the property, the season, and your goals. A thoughtful plan can help you present a confident offer while protecting your funds during due diligence.
If you are weighing how much earnest money to offer or how to structure your timelines, we are here to help. Start your Lowcountry search — contact the Taylor Keenan Team for local guidance tailored to Pawleys Plantation and the surrounding Pawleys Island area.
FAQs
What is earnest money in a Pawleys Plantation home purchase?
- It is a good-faith deposit credited toward your purchase at closing that shows commitment to the seller and is governed by your South Carolina purchase contract.
How much earnest money should I expect on a $500,000 Pawleys Plantation home?
- Many buyers use 1% to 2% as a starting point, which would be $5,000 to $10,000, adjusting for competitiveness and your comfort level.
When is earnest money due after my offer is accepted in South Carolina?
- The contract sets the deadline, commonly at offer or within 24 to 72 hours after acceptance, with possible additional deposits scheduled later.
Who usually holds earnest money for Pawleys Island transactions?
- The contract names the escrow holder, often a title company, a broker’s trust account, or a closing attorney.
Can I lose my earnest money if my loan falls through?
- If you cancel within a valid financing contingency and follow the contract’s timeline and notice rules, your deposit is typically refundable; without that protection, you could be at risk.
