Quick answer: On a $700,000 Edgewater 80214 home, earnest money of 1% is $7,000 and 2% is $14,000. Under the Colorado contract it is due with your offer, sits in a trust account, and comes back to you if you terminate in writing by the right deadline. At closing it counts toward your down payment.
By Katerina Veteskova, Colorado real estate broker license FA.100082955, eXp Realty, LLC
Earnest money is the deposit that tells a seller you mean it. What matters is the size of the check and the deadlines that decide whether it comes back.
The example below uses a $700,000 purchase in the 80214 zipcode, which takes in Edgewater plus parts of Lakewood and Wheat Ridge. The contract terms come from the Colorado Real Estate Commission's CBS1 buy-sell form, adopted August 5, 2025, and required for use from January 1, 2026.
How much earnest money goes with a $700,000 Edgewater 80214 offer?
Sized as a share of the price, 1% is $7,000 and 2% is $14,000.
The state form leaves the dollar amount blank, so it is a term you negotiate like price and dates. On this purchase that means:
- 1% of the price: $7,000
- 2% of the price: $14,000
Redfin put the 80214 median sale price at $604,822 for the three months ending September 2026, so a $700,000 home sits above the middle of this market. That price fits the Edgewater $700K to $1M search, and the zipcode has its own 80214 Edgewater homes from $700K search.
When is earnest money due under the Colorado contract?
With the signed offer, unless you and the seller agree to a later date.
The CBS1 form says the deposit must be tendered by the buyer with the contract. If you need time to move funds, the parties can write in an Alternative Earnest Money Deadline instead. Time is of the essence on every date in the form, and a payment that is not made when due, earnest money included, can put you in default.
Wire instructions deserve a phone call. Confirm them with the title company at a number you already know before you send anything.
Who holds your earnest money until closing?
The Earnest Money Holder named in the contract, in its trust account, on behalf of both you and the seller.
The form has a blank for the holder's name, which can be a brokerage or a title company. The contract also lets the holder deliver the deposit to the closing company at or before closing, so it lands on your settlement statement as a credit.
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When do you get earnest money back in Colorado?
When you have a right to terminate and the seller receives your written notice on or before that deadline.
The CBS1 form ties your exits to dated deadlines, including:
- Inspection Termination or Inspection Objection Deadline
- New Loan Terms and New Loan Availability Deadlines
- Appraisal Objection Deadline, for a value below the price
- Record Title and Off-Record Title Objection Deadlines
- Association Documents Termination Deadline
- Property Insurance Termination Deadline
Once the contract ends, the form says all earnest money received must be returned to the buyer in a timely way. The seller has three days to sign the release form after receiving it, and a brokerage acting as holder releases funds within five days of receiving signed mutual instructions.
When can a buyer lose earnest money?
When you miss a deadline or walk away without a contract right to do so.
A Notice to Terminate that arrives after its deadline is ineffective, and you are treated as accepting that item. The loan section is blunt: without a timely notice by the New Loan Availability Deadline, your earnest money becomes nonrefundable, apart from other exits such as appraisal or title. If you default, the standard form makes the deposit the seller's liquidated damages and only remedy, unless the parties checked the specific performance box.
If buyer and seller disagree, the holder does not have to release anything. It can wait for a court case, deposit the money with a court, or tell both sides it will return the deposit to the buyer unless it sees a filed lawsuit within 120 days.
Does earnest money count toward your down payment?
Yes, it is credited to your cash at closing.
Fannie Mae's earnest money rules call the deposit an acceptable source of funds for both the down payment and closing costs. With 20% down on $700,000, a $14,000 deposit leaves $126,000 of the $140,000 down payment to bring at closing. Your lender will want bank statements showing the average balance over the past two months could cover the deposit.
The deposit does not change your loan. A $560,000 loan at 7.24%, the Freddie Mac PMMS 30-year average as of October 29, 2026, down from 7.32% a week earlier, is about $3,816 a month in principal and interest either way.
Should you offer more earnest money in 80214?
Only when the market and your deadlines both support it.
Redfin's 80214 numbers for the three months ending September 2026 show homes selling in about 22 days at 98.8% of list, with 26.8% selling above list and about 2 offers per home on average. At 98.8%, a $700,000 list price would close near $691,600.
A deposit near $14,000 makes more sense if:
- The home is new to the market and other offers are likely
- You have a lender preapproval and inspection lined up
- You can meet every deadline in the contract without stretching
A deposit near $7,000 makes more sense if:
- The listing has sat or had a price drop
- You still need the appraisal or loan terms to settle your choice
- Your cash is tight and you want a larger cushion before closing
Which Edgewater and nearby searches fit a $700,000 budget?
Start with Edgewater homes from $700K or the 80214 Edgewater homes from $700K search, and check Edgewater homes from $1.2M if you plan to stretch.
Next door, compare 80033 Wheat Ridge homes from $700K, Wheat Ridge homes from $700K, Wheat Ridge $700K to $1M, Lakewood homes from $700K, Lakewood $700K to $1M and Arvada homes from $700K. Attached options sit in Jefferson County townhomes and condos from $700K, and Front Range $700K to $1M covers the wider metro.
Broker view: "I put every earnest money deadline on the buyer's calendar the day the contract is signed, because the deposit is only as protected as the notice behind it. A bigger deposit can help an offer stand out, but I never let it replace a clean inspection and loan timeline." - Katerina Veteskova, eXp Realty, LLC
What this guide does not cover: builder contracts on new construction, FHA and VA appraisal clauses, contingent sale terms, closing costs, mortgage insurance, property tax, homeowners insurance and HOA or metro district dues. For a dispute over a deposit, talk to a Colorado real estate attorney.
Sources: Colorado Real Estate Commission CBS1 Contract to Buy and Sell Real Estate, adopted August 5, 2025, mandatory January 1, 2026. Fannie Mae Selling Guide B3-4.3-09, Earnest Money Deposit. Freddie Mac PMMS, 30-year fixed average of 7.24% for the week of October 29, 2026. Redfin 80214 zipcode housing market page, three months ending September 2026, checked October 31, 2026. Deposit, down payment and payment figures are my arithmetic from those inputs.
Lining up an offer in Edgewater? Call or text 720-646-4685, or request a tour.
Frequently asked questions
How much earnest money should I put down on an Edgewater home?
The Colorado contract leaves the amount for you and the seller to agree on. On a $700,000 home, 1% is $7,000 and 2% is $14,000. A larger deposit can make an offer look firmer, but more of your cash is on the line until closing.
Is earnest money refundable in Colorado?
Yes, when you have a right to terminate under the contract and the seller receives your written notice on or before that deadline. A notice that arrives late does not terminate the contract, and the money can go to the seller.
Who holds my earnest money in Colorado?
The contract names an Earnest Money Holder, such as a brokerage or title company, which keeps it in a trust account on behalf of both buyer and seller and sends it to the closing company before closing.
Does earnest money count toward my down payment?
Yes. Fannie Mae treats the deposit as an acceptable source for both the down payment and closing costs. With 20% down on $700,000, a $14,000 deposit leaves $126,000 of the $140,000 down payment to bring at closing.
Katerina Veteskova is a Colorado real estate broker (license FA.100082955) with eXp Realty, LLC. Call or text 720-646-4685, or request a tour.