How Much Is the Earnest Money Deposit When Buying a House in Massachusetts? (2026 Quincy Buyer's Guide)
Last updated: November 2, 2026
FRESHNESS: evergreen (deposit customs change slowly; no rate figures)
BUYER EDUCATION
How Much Is the Earnest Money Deposit When Buying a House in Massachusetts? (2026 Quincy Buyer's Guide)
November 2, 2026 | By Krista Recker
In many Greater Boston deals, you put down an initial deposit of about $1,000 with your offer, or by the deadline written in it, and add enough at the Purchase and Sale Agreement to bring the total to about 5% of the purchase price, often 10 to 14 days after acceptance. On a hypothetical $670,000 Quincy purchase, that is $33,500 in total, with $32,500 more at the P&S. The deposit is not an extra cost: at closing it is credited toward the purchase price and reduces the cash you still have to bring.
No Massachusetts law sets those numbers. They are negotiated customs, so the figures and deadlines in your signed offer are the ones that govern. I am a real estate salesperson, not an attorney, so treat this as the framework and have your closing attorney confirm the details in your contract.
Who this applies to
This is written for you if any of the following is true:
- You are a first time buyer in Quincy or on the South Shore and want to know how much cash to have ready before you make an offer.
- You are about to write an offer and are deciding whether to offer a larger deposit to stand out in a multiple offer situation.
- You have an accepted offer and want to know who is holding your money and when you can get it back.
- You are a seller weighing two offers and want to know how much a buyer's deposit says about their commitment.
How much is the earnest money deposit in Massachusetts?
The usual structure is two payments. The first is a good faith deposit of about $1,000 that accompanies the Offer to Purchase, or is due by the deadline in it. The second brings the total to about 5% of the price at the Purchase and Sale Agreement. Treat 5% as a customary benchmark, not a measured market average. New construction sellers may negotiate larger deposits, and a softer market can push the 5% lower. Any percentage you see, including 10%, is a possible contract term and not a legal cap.
Here is what 5% looks like at Quincy price points:
| Purchase price | Total deposit at 5% | Balance due at the P&S after a $1,000 first deposit |
|---|---|---|
| $450,000 condo near the Red Line | $22,500 | $21,500 |
| $670,000 single family in Wollaston | $33,500 | $32,500 |
| $850,000 single family in Squantum | $42,500 | $41,500 |
| $1,000,000 waterfront home in Houghs Neck | $50,000 | $49,000 |
Prices are hypothetical examples, not current listings or Quincy market statistics. Figures checked against Massachusetts buyer-broker and real estate attorney guidance and Mass.gov in November 2026.
When is the earnest money due?
Your signed offer sets the date. The first deposit is typically delivered with the offer or by the deadline written in it, by check or wire to the escrow holder named in the offer, and the balance is due when you sign the P&S. Confirm the holder's accepted payment methods before you deliver anything, and do not assume physical cash is accepted.
A typical timeline looks like this:
- Offer accepted: initial deposit of about $1,000 delivered by the deadline in the offer.
- Days 7 to 10: home inspection period runs.
- Days 10 to 14: P&S signed and the balance of the deposit, usually bringing the total to about 5%, is paid.
- Roughly Days 45 to 60: closing, when the deposit is credited toward your purchase price.
These are customary windows, not statutory deadlines.
Who holds the earnest money in Massachusetts?
The agreement names the escrow holder, commonly the listing brokerage or the seller's attorney, and the funds sit in a special escrow account. Massachusetts broker regulations (254 CMR 3.00) require a broker to deposit client money in a bank escrow account and prohibit a salesperson from holding client funds independently, so a check goes to the brokerage or attorney, not to an individual agent. Attorney-held funds fall under attorney trust account rules. At closing, the deposit is accounted for and paid out under the agreement and the closing instructions.
The holder must follow the contract. When buyer and seller dispute who is entitled to the deposit, the holder should not decide the winner alone. The funds generally stay in escrow until the parties agree in writing or a court decides, which can take months. Massachusetts requires substantive attorney participation in residential mortgage closings, which is why your closing attorney, not a title company, is the person to ask about your deposit.
When do you get your earnest money back?
You are generally entitled to the deposit back if you validly use a contingency in your contract, meeting its written notice, deadline, and other requirements. You generally lose it if you back out without a contract right to do so, if you waived the contingency, or if you miss the date. Even a valid refund claim does not always mean immediate payment if the seller disputes it.
| Situation | Deposit usually | Why |
|---|---|---|
| Inspection finds a $25,000 foundation repair and you terminate in writing inside the inspection window | Refunded | The contingency gave you the right to walk |
| Lender cannot issue a commitment by the mortgage date despite diligent efforts, you applied on time, and you send written notice before the date | Refunded | The mortgage contingency requires diligent efforts plus a complete application and timely notice |
| You change your mind after the contingency dates pass | At risk of forfeiture | Contracts typically treat the deposit as liquidated damages on buyer default |
| Seller cannot deliver clear title or backs out | Generally refundable, depending on cure periods | Outcomes depend on the signed agreement and your remedies |
In the Greater Boston Real Estate Board form, a buyer default typically lets the seller keep the deposit as liquidated damages, though the form includes a provision letting the seller choose another remedy by written notice, and riders vary by deal. That is why 5% is real money you can lose. Have your attorney read the edition and riders in your contract. See my post on the mortgage contingency for the date mechanics.
Can a seller make you waive the home inspection to keep your deposit?
No, not under Massachusetts home inspection rules that took effect in October 2025 (760 CMR 74.00). They restrict sellers from conditioning acceptance of an offer on a buyer waiving an inspection, and they require a separate signed disclosure no later than the first written purchase contract. You can still choose on your own not to inspect, but a seller cannot require it. See Mass.gov's residential home inspections page for the current text.
Should you offer a bigger deposit to win a bidding war?
A larger deposit makes your offer look stronger, but it only helps if the seller believes you will close, and it raises what you can lose. If your contingencies are intact, a bigger deposit costs you nothing extra when you walk within them. The risk comes when you pair a big deposit with shortened or waived contingencies. In that case, you are betting the amount of the deposit that the inspection and appraisal will go your way. A deposit of $5,000 to $10,000 at the offer stage signals seriousness without putting a full 5% at risk before you have inspected.
What if the seller and buyer disagree about the deposit?
The holder generally keeps the disputed funds in escrow until the parties agree in writing or a court decides, which can take months. Keep every notice in writing, sent the way the contract requires, and have your attorney handle it.
The Bottom Line
Expect an initial deposit of about $1,000 and about 5% in total at the P&S, which is $33,500 on a hypothetical $670,000 Quincy purchase. It is held in escrow, it is credited toward your purchase price at closing, and it is generally refundable if you validly cancel in writing under a contingency before the deadline. Have the cash ready before you write an offer, and ask your attorney what your contract says about each deadline.