Mile High Home Group – Welcome to Denver

How Does Earnest Money Protect Buyers?

Earnest money in Colorado protects buyers by holding 1-3% deposits ($6K-$21K on $600K-$700K homes) in escrow, fully refundable during the 10-day option period for any reason and under key contingencies like financing or appraisals—giving leverage to exit bad deals without loss in Denver-area transactions.

Earnest Money Mechanics

After 15+ years in Denver real estate and thousands of transactions, I’ve seen earnest money act as a safety net from Day 1. Buyers deposit within 1-3 days post-acceptance into a neutral escrow account—non-interest bearing, neutral third-party held. During the mandatory 10-day option ($100-$500 fee), inspect freely (roof, sewer, radon, foundation)—walk anytime, get full earnest back minus fee only. Post-option, financing (21 days) and appraisal contingencies keep it safe if loans fail at 6.5% rates or values gap 5-10%. Highlands Ranch real estate HOA snags trigger releases too.

Sellers claim only on proven breaches.

Denver-Specific Safeguards

In Littleton bungalows near top schools, clay pipe failures refund earnest pre-waiver; Highlands Ranch villages ($150-$400 HOAs) add covenant reviews without risk. Core Denver condos protect via reserve fund checks. Market cycles matter—spring frenzy waives faster, but balanced falls retain full shields. Douglas County courts refund promptly on valid exits, unlike riskier seller markets. Compared to Littleton flexibility, HOA-heavy Highlands Ranch extends protections 7-10 days.

Disputes go to mediation first.

Practical Advice for Buyers and Sellers

Protection Phase	Refund Trigger	Amount Safe
Option Period	Any issue	100% minus fee
Financing/Appraisal	Fail contingency	100%
Post-Waiver	Breach only	0%

Buyers, deposit minimally—1% max—activate inspections Day 1, negotiate credits ($5K-$15K) without waiving early; document everything.

Sellers, verify deposits Day 3—disclose fully to avoid fraud claims, counter weak offers.

My hands-on, concierge-level service ensures earnest shields every step block-by-block, weighs school/HOA fits through market cycles, builds pricing from local sales, and negotiates relentlessly for buyer security. Clients are long-term relationships and friends, not transactions—integrity, honesty, transparency, and relentless work ethic make protections ironclad.

If earnest money questions impact your Denver real estate moves—Littleton, Highlands Ranch details—reach out anytime. I’m here for a no-pressure conversation and honest guidance tailored to the Colorado housing market.