How much earnest money is typical in Colorado Springs?

In my experience, Colorado Springs sellers usually ask for earnest money of about 1% of the price, sometimes a little more, and the amount is often stated with the listing. It's not a rule, and every seller sets their own number. I recommend offering the amount the seller requested when it's in that range, because it shows you're serious. The money is held in a trust account and counts toward your purchase at closing. Under Colorado's standard contract, you get it back if you end the contract on time for a reason the contract allows.

What earnest money is and where it goes

Earnest money is a deposit you make when your offer is accepted. It shows the seller you intend to follow through. Under Colorado's standard purchase contract, from the Colorado Division of Real Estate:

• It's held by a named Earnest Money Holder in its trust account, often a title company or the listing brokerage. You don't hand it to the seller.
• It's due with the contract, unless both sides agree to an Alternative Earnest Money Deadline.
• At closing, it counts toward your purchase, reducing the cash you bring that day. See how much cash you need to buy a home.

How much to offer

The seller usually tells you what they're looking for. In Colorado it's not guaranteed to be any set amount, but in my experience it's typically about 1% of the price or a little more.

When the seller's request is in that range, I recommend putting in the amount they asked for. Like a pre-approval letter, it shows you're serious and that you're not trying to undercut the seller or play games. In my opinion, a request in that range is very reasonable.

If a seller asks for much more than usual, that's worth a conversation before you write the offer. Offering more than requested can make an offer look stronger in a competitive situation, but it also puts more of your cash on the line. It's worth weighing that against the deadlines you'll have to protect it. See how far below asking you can offer for the rest of the offer.

How Colorado's contract protects your earnest money

Colorado's standard contract gives buyers several rights to end the contract and get their earnest money back. Many of them are in the buyer's "sole subjective discretion," which means you don't have to justify the decision, as long as you act by the deadline:

If you have a right to terminate and use it on time, the contract says you're entitled to the return of your earnest money.

I haven't seen a buyer lose earnest money after ending a contract on time for one of the reasons the contract provides. The protection is in the contract itself. When I write an offer, we also stage the deadlines so you have time to review the information you want and need, and can make a fully informed decision at each step.

When you could lose it

Earnest money is at risk in a few situations:

• Missing a deadline. If a deadline passes without you acting, that right to terminate is gone. The contract also says your earnest money becomes nonrefundable if you don't terminate by the New Loan Availability Deadline, with some exceptions.
• Defaulting. If you simply don't perform, the contract's default choice is that the seller keeps the earnest money as "liquidated damages," their only remedy. If a different box is checked, the seller may pursue more. It's worth knowing which one your contract uses.
• A dispute. If the two sides disagree about who gets the money, the holder doesn't release it without signed instructions from both. The contract requires mediation first, and the holder can wait, hand the money to a court, or return it to the buyer if no lawsuit is filed within 120 days of its notice.

What this looks like in Colorado Springs

Insurance and HOAs are real reasons to use these rights here. Hail and wildfire risk affect insurance in Colorado Springs, and many neighborhoods have HOAs or metro districts. The insurance and association document deadlines give you time to check both before your earnest money is at risk. See why homeowners insurance varies and what to review before buying in an HOA.

VA buyers usually still put down earnest money. A VA loan can mean no down payment, but sellers typically still expect earnest money with the offer. It counts toward your closing costs at closing.

Wire it safely. Earnest money is often sent by wire, and wire fraud targets real estate deposits. Before you send money, it's worth calling the title company at a number you find yourself, not one in an email, to confirm the instructions.

A simple way to decide

• If the seller's request is about 1% or a little more, matching it is a simple way to show you're serious.
• If the request seems unusually high, it's worth talking it through before you offer and checking that the deadlines give you time to protect it.
• If you're competing for a home, more earnest money can help, but only if you're comfortable with the deadlines.
• If you're unsure about insurance, the HOA, or the home's condition, it's worth setting those deadlines with enough time to find out.

What could change the answer

• Each seller sets their own request, and some ask for more on higher-priced homes or in competitive situations.
• The deadlines you agree to decide how much protection you have, so short deadlines mean more risk.
• Which default remedy box is checked changes what the seller can pursue if you don't perform.
• Colorado's standard contract is updated from time to time. This page reflects the version for use on or after January 1, 2026.

When to talk with a professional

Your real estate agent can explain the deadlines in your contract and help you set them so you have time to make decisions. The title company or other Earnest Money Holder can confirm how and when to deliver the deposit. If you're in a dispute over earnest money, a real estate attorney can explain your options.

Sources

• Colorado Division of Real Estate, Contract to Buy and Sell Real Estate (Residential), for use on or after January 1, 2026 (§ 4.3 Earnest Money; §§ 5.2, 6.2, 7.4, 8.7, 9.3, 10.3, 10.5 termination rights; § 20 default; §§ 22–24 mediation, earnest money disputes, and termination)