Earnest money is a deposit that shows the seller of a property that a buyer is serious about completing the purchase. It is sometimes referred to as “good faith money” and is usually held in an escrow account by the title company or real estate agent until the transaction is complete. The amount of earnest money is typically a small percentage of the overall purchase price, but it can be more for high-value purchases. Some buyers put down earnest money to show the seller that they are serious about the offer, even if their financing falls through or other complications arise.