What Are Non-Refundable Earnest Money Terms in NH Real Estate?

🏡 What Are Non-Refundable Earnest Money Terms in NH Real Estate?

Across competitive markets in Plymouth, Campton, Rumney, Thornton, and the greater Central NH region, buyers sometimes use non-refundable earnest money to strengthen their offer.

While it can make an offer more appealing to sellers, it also carries real financial risk for buyers.

Here’s exactly how non-refundable earnest money works in New Hampshire.

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What Is Non-Refundable Earnest Money?

Earnest money is typically refundable if a buyer backs out due to a contingency (inspection, financing, appraisal, etc.).

Non-refundable earnest money means the buyer agrees the seller can keep that deposit if the buyer walks away for any reason not covered by the agreement.

It is a high-commitment strategy used to stand out in multiple-offer situations.

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When Do NH Buyers Offer Non-Refundable Deposits?

Common scenarios include:

✔ Multiple-offer bidding wars

✔ Homes receiving cash or aggressive offers

✔ When buyers want to signal they won’t walk away

✔ Investors or flippers competing for desirable properties

✔ Sellers needing fast, risk-free closings

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How Much Earnest Money Becomes Non-Refundable?

Buyers may offer:

• A portion of the deposit (example: first $2,500 non-refundable)

• The entire deposit after a certain date

• Non-refundable after inspection is waived or completed

• Non-refundable immediately upon offer acceptance (less common)

It should always be clearly itemized in writing.

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What Risks Should NH Buyers Understand?

Buyers should know:

• If you walk for personal reasons, you lose the deposit

• Financing issues may not protect you

• Appraisal problems could put your deposit at risk

• You must be fully confident in condition, financing, and timeline

This strategy should only be used when the buyer is 100% certain about moving forward.

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Why Sellers Like Non-Refundable Earnest Money

For sellers, this provides:

✔ Extra confidence the deal will close

✔ Financial compensation if the buyer backs out

✔ Stronger leverage in multiple-offer situations

✔ A clear signal of buyer commitment

It can be the deciding factor between otherwise similar offers.

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How to Structure Non-Refundable Earnest Money in NH

A well-drafted clause should spell out:

• Amount of deposit that is non-refundable

• Exact date or condition when it becomes non-refundable

• Who holds the deposit (usually escrow)

• Any exceptions (inspection findings, title issues, etc.)

• Timeline for deposit release at closing

Clear wording protects both parties.

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Keywords

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Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com