How an Earnest Money Deposit Works in Point Loma

How an Earnest Money Deposit Works in Point Loma

  • 09/22/25

What Is an Earnest Money Deposit When Buying a Home in Point Loma, San Diego?

If you’re planning to buy a home in Point Loma, CA, you’ll likely hear the term earnest money deposit during the process. This is a key part of making an offer and shows sellers you’re serious about purchasing their property in this highly competitive coastal market.

How an Earnest Money Deposit Works in Point Loma

  • Typical Amount: In San Diego, earnest money deposits are often 1–3% of the home’s purchase price, though higher amounts may strengthen your offer—especially in sought-after neighborhoods like Point Loma.
  • Where It’s Held: Your deposit is placed in an escrow account, protecting both buyer and seller while the transaction moves forward.
  • Why It Matters: With Point Loma homes often attracting multiple offers, a solid earnest money deposit helps your offer stand out.

What Happens to Your Deposit

  • If your purchase closes, the deposit is applied toward your down payment or closing costs.
  • If you cancel under a valid contingency (such as inspections, financing, or appraisal), your deposit is usually refunded.
  • If you back out without a contractual reason, the seller may be entitled to keep it.

Why It’s Important for Point Loma Buyers

With Point Loma’s mix of historic homes, waterfront properties, and luxury real estate, sellers want reassurance that a buyer is committed. An earnest money deposit provides that confidence while giving buyers a clear stake in the process.


👉 Thinking about buying a home in Point Loma?  I’m Diane Sullivan, Broker/Owner of Diane Sullivan Realty, and I’ve been helping buyers and sellers in the Point Loma and Ocean Beach communities for over 21 years. If you’re ready to navigate the process with confidence, contact me today—I’d love to help you find the right home in Point Loma.

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Working with Diane as your Boutique Broker will give you one-of-a-kind, personalized, and quality service you might not get from Agents working with larger companies or teams.

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