Saving for a home in Wisconsin takes planning, and earnest money can feel like one more mystery. You might be wondering how much you need, when you pay it, and what happens if something goes wrong. You want to protect your deposit and still write a strong offer in Green Bay’s market. In this guide, you’ll learn exactly how earnest money works in Wisconsin, what’s typical around Brown County, and how to keep your funds safe. Let’s dive in.
What earnest money is in Wisconsin
Definition and purpose
Earnest money is a good-faith deposit you put down with an offer or shortly after acceptance. It shows the seller you are serious and gives both sides time to work through inspections, financing, appraisal, and title. It is not your down payment, though it usually gets applied to your costs at closing.
How the contract controls everything
In Wisconsin, your purchase contract sets the rules for earnest money. Most residential deals use forms like the WB-11 Residential Offer to Purchase. The contract states the deposit amount, who holds it, when it must be deposited, and the conditions for release if the deal cancels or closes.
Brokers, title companies, and attorneys who hold earnest money must keep it in trust or escrow accounts under state rules. Your funds are separated from business accounts and handled with fiduciary care.
How much earnest money in Green Bay
Typical earnest money in many Midwest markets ranges from a few thousand dollars to about 1%–3% of the purchase price. In a stronger seller’s market or on higher-priced homes, buyers sometimes offer 3%–5% or more to stand out.
Here are simple examples to help you plan:
- $175,000 home: 1% = $1,750; 2% = $3,500.
- $250,000 home: 1% = $2,500; 3% = $7,500.
- $350,000 home: 1% = $3,500; 2% = $7,000.
Local norms can shift with competition, property type, and seller expectations. Ask your agent what’s typical right now in Brown County so you can balance a competitive offer with preserving cash for inspections and closing.
When you deposit and who holds it
Deposit deadlines
Your contract sets the deadline. Many offers specify deposit within 1–3 business days after acceptance, but the timing can vary. Missing the deposit deadline can be a breach of contract, so plan for weekends and bank hours when you write your offer.
Who holds the funds
- Title or escrow company: Neutral, experienced with closings, and common in Wisconsin.
- Broker trust account: Efficient and widely used, with strict trust-account rules.
- Attorney trust account: Sometimes used when an attorney manages the closing.
Your offer should clearly name the deposit agent and set a specific number of business days for delivery. Always get a written receipt.
When you get it back vs. when you could lose it
Refunds tied to contingencies
If you cancel within a contingency period and follow the contract’s notice rules, you generally get your earnest money back. Common contingencies include inspection, financing, appraisal, title, and sale-of-home. The key is strict, written notice before the deadline listed in your contract.
- Inspection: If an inspection reveals issues and you cancel within the inspection window, your deposit is typically refunded.
- Financing: If you cannot obtain financing and cancel by the financing contingency deadline, your deposit is usually refunded.
- Appraisal: If the property does not appraise and you cancel per the appraisal clause, you typically receive a refund.
- Title: If a title issue cannot be fixed and you cancel as allowed, you receive a refund.
Forfeiture and default
If you fail to close and your reason is outside the allowed contingencies, the seller may keep your earnest money as liquidated damages, or pursue other remedies if the contract allows. Failing to deposit on time can also be a default. Read the remedies section in your offer and ask questions before you sign.
Disputes and releases
If buyer and seller disagree about who should receive the funds, the escrow holder will follow the contract. They may require joint written instructions or hold funds until mediation, arbitration, or other dispute steps conclude. Written notices, receipts, and clear timelines help avoid disputes.
Common pitfalls to avoid
- Missing a deadline. Even a valid reason to cancel can lead to a lost deposit if your notice is late or not in writing.
- Assuming it’s always refundable. Your contract decides what happens. Know the remedies and the exact steps to cancel.
- Not naming the deposit agent. If the offer is vague, delivery and release can get messy.
- Ignoring wire-fraud risks. Last-minute “new” wiring instructions are a red flag. Always verify by phone using a known number.
- Forgetting proof. Keep copies of wires, checks, and written receipts.
Wiring and escrow safety
Secure wiring checklist
- Call to verify wiring details using a known, trusted phone number for the title company or broker. Do not rely on numbers in a new email.
- Be wary of urgent emails or changes to wiring instructions. Confirm with a live person before sending funds.
- Use two-factor authentication on your email and bank accounts.
- Get a written receipt immediately after you wire or deliver a cashier’s check.
- Keep screenshots and confirmation numbers.
If something goes wrong
If you suspect wire fraud, contact your bank and the recipient bank immediately. Notify the title or escrow company, both agents, and local law enforcement in Brown County. Reporting quickly improves the chance of recovery, but prevention is far better.
Plan your cash the smart way
Funds to have ready when you make an offer
- Earnest money, delivered by the contract deadline.
- Home inspection fee, often around a few hundred dollars.
- Appraisal fee, if required by your lender.
- Loan application or credit report fees, depending on your lender.
Funds to have ready for closing
- Down payment, minus any earnest money already paid.
- Closing costs, often about 2%–5% of the price depending on your loan and negotiations.
- Prepaids and reserves for property taxes and homeowners insurance.
Practical tips
- Do not tie up all your cash in earnest money. Keep enough for inspections, potential repairs, or added earnest money in a competitive situation.
- Coordinate with your lender so appraisal and loan approval line up with your contract deadlines.
- Confirm deposit logistics early, especially if you are writing an offer on a weekend or holiday.
How earnest money is applied at closing
At closing, your earnest money is credited toward your down payment or closing costs and shows on your settlement statement. If the contract terminates and a refund is due, the escrow holder follows the release instructions in the contract and any written directions agreed by both parties.
Local tips for Brown County buyers
- Build your timeline around business days. Banks and title offices operate on business days, which can affect weekend offer deposits.
- Ask for a deposit receipt. It documents delivery and helps prevent disputes.
- Name a clear deposit agent in the offer. Title companies commonly handle earnest money in Green Bay and coordinate smoothly with lenders and agents.
- Keep your agent looped in on every notice. Proper, on-time written notices protect your deposit.
Buying in Green Bay should feel exciting, not stressful. When you understand how earnest money works, you can write a confident offer, protect your funds, and move through contingencies with clarity. If you want help tailoring deposit amounts and timelines to today’s Brown County market, reach out to the local team that puts your goals first. Connect with Ingrid Landry to get a clear plan for your next move.
FAQs
What is earnest money in Wisconsin real estate?
- It is a good-faith deposit that shows you are serious, held in trust and applied to your costs at closing according to your purchase contract.
How much earnest money should I offer in Green Bay?
- Many buyers put up about 1%–3% of the price, though a few thousand dollars is common on lower-priced homes and higher percentages can strengthen an offer.
Is my earnest money refundable after a bad inspection?
- If you cancel within the inspection deadline and follow the contract’s written notice rules, you generally receive a refund.
Who typically holds earnest money in Wisconsin?
- Title or escrow companies commonly hold it, though brokers or attorneys may also serve as the deposit agent per your contract.
How soon do I need to deposit earnest money after acceptance?
- Your contract sets the deadline, often within 1–3 business days, and missing it can be a breach, so plan ahead.
What happens to earnest money at closing?
- It is credited to your down payment or closing costs and appears on your final settlement statement.
