Buying a home in Franklin and not sure how much to put down or how long you have to inspect the property? You are not alone. Between earnest money, inspection timelines, and contract deadlines, the early days after an accepted offer can feel intense. This guide breaks down what matters in Williamson County so you can protect your deposit, move with confidence, and compete in a popular market. Let’s dive in.
What earnest money means in Franklin
Earnest money is your good‑faith deposit that accompanies an offer and is held in escrow while the contract is active. It signals to the seller that you are serious and ready to proceed. The amount and timing are negotiated in the contract and must follow the escrow instructions set out in that agreement.
In Franklin, the contract form most buyers and sellers use is commonly associated with Tennessee REALTORS. That contract outlines when the deposit is due, where it is held, and what happens if either party does not meet a deadline. Because local demand is strong, buyers often tailor their earnest money to reflect both price point and competition.
How much earnest money to offer
There is no statewide rule for deposit size. Amounts vary by price, property type, and how competitive the listing is. Common local patterns include:
- Lower‑priced or noncompetitive situations: often a few thousand dollars, such as 1,000 to 5,000 dollars.
- Higher‑priced homes or multiple‑offer situations: deposits often scale with price, commonly around 1 percent or more of the purchase price.
If a listing attracts attention quickly, buyers sometimes strengthen an offer with a larger deposit or a shorter inspection period. Bigger deposits can help you stand out, but they also increase your exposure if you miss a deadline. Choose an amount that matches your comfort level and your plan for contingencies.
Who holds your deposit and when it is due
Your contract names the escrow agent that will hold the earnest money. In Franklin and greater Williamson County, a title or closing company is commonly used. Sometimes a broker’s trust account holds it. Regardless of who holds the funds, the escrow party must follow the contract and applicable trust‑account rules.
The contract sets the due date for your deposit. Local practice often calls for delivery within 1 to 3 days after the seller accepts your offer. Late deposits can be a breach of contract. Put a reminder on your calendar and confirm the delivery method with your agent and the escrow holder.
What happens to earnest money
When you follow the contract and exercise your rights during the inspection or due diligence period, you generally protect your deposit. Typical outcomes include:
- If you properly terminate within the inspection window using the contract’s notice, your deposit is typically refunded.
- If you request repairs or credits and reach an agreement, the deal moves forward and your deposit stays in escrow until closing.
- If you miss a deadline or cancel outside of your rights, the seller may have claims to the deposit. Many contracts include liquidated damages or dispute language that describes this.
If a dispute arises over who gets the money, the escrow agent follows the contract. The funds may be held until both parties agree or a court or other dispute process directs release.
Your inspection period timeline
The inspection or due diligence period is your window to investigate the property. In Middle Tennessee, buyers commonly negotiate 5 to 15 days, with 7 to 10 days often used. In competitive situations, buyers sometimes shorten this period to strengthen the offer. Shorter windows mean less time to schedule specialists, so plan ahead.
During the period, you can do three things: proceed with the purchase, negotiate repairs or credits, or terminate under the contract’s procedures. The key is to use written notices and meet every deadline.
Common inspections in Williamson County
- General home inspection: structure, roof, HVAC, plumbing, electrical, foundation, and visible issues like rot or moisture.
- Wood‑destroying insects and termite inspection: common in Tennessee’s climate.
- Radon test: ordered by some buyers depending on preference.
- Sewer scope: smart for older homes or if there are performance questions.
- Septic or well inspection: for properties not on municipal services.
- Specialty checks as needed: roof, pool, chimney, HVAC service review, or environmental testing for older homes.
Document and title reviews to include
- HOA documents if applicable: covenants, bylaws, rules, financials, and any known litigation or proposed changes.
- Survey or boundary review: confirm property lines, easements, and improvements.
- Title review: work with your title company on exceptions and recorded items.
- Sellers’ disclosures and any attachments: read carefully and schedule follow‑up inspections if needed.
How to use the inspection period well
Move fast once your offer is accepted. Schedule the general inspection immediately, often the same day. If you suspect a septic system, a pool, an aging roof, or older plumbing, book those specialty inspections at the same time. Line up contractors to provide estimates if the inspector flags major items.
Put all requests and notices in writing. If you want repairs, state the scope clearly and include receipts or licensed contractor requirements when appropriate. If you decide to terminate, deliver the termination notice before the period expires and confirm receipt. Keeping a paper trail protects your deposit.
Strategy in competitive Franklin offers
Franklin and Williamson County often see multiple offers on well‑priced listings. Buyers sometimes improve terms by raising the earnest money amount, shortening the inspection window, or both. These moves can help you win, but they reduce your margin for error.
Consider a two‑part approach. First, set a deposit level that feels strong yet comfortable. Second, keep your inspection window tight but workable for your property type. For example, historic homes often require more inspections, while new construction may require fewer. Match your timeline to the home, not just the competition.
Step‑by‑step checklist for buyers
- Before you make an offer
- Decide how much earnest money you can comfortably put at risk if you waive or limit contingencies.
- Discuss typical inspection timelines for the neighborhood and price point.
- Identify which specialty inspections you might need based on property age and features.
- When your offer is accepted
- Deposit your earnest money within the contract’s timeframe, often 1 to 3 days.
- Schedule the general home inspection immediately.
- Order specialty inspections: pest, radon, sewer scope, well or septic as applicable.
- Request HOA documents and review seller disclosures.
- During the inspection window
- Read inspection reports and get estimates for bigger issues.
- Decide whether to proceed, request repairs or credits, or terminate.
- Deliver any repair requests or termination in writing before the deadline.
- If repairs are agreed
- Use a written amendment that lists scope, contractor requirements, and timing.
- Confirm whether work will be completed before closing or credited at closing.
- If terminating within the period
- Send written notice according to the contract and request your deposit back from the escrow agent.
- Before closing
- Confirm that any credits and your earnest money are reflected on the closing statement.
Local considerations: HOAs, historic homes, and new builds
Many Franklin neighborhoods are part of an HOA. Use your due diligence period to read the covenants, rules, fees, and any disclosed issues. Pay attention to restrictions that affect parking, fencing, additions, short‑term rentals, and pets. Ask questions early so you can make a clear decision within your deadline.
Franklin also has historic homes and districts. Older properties may benefit from additional structural, plumbing, and electrical inspections. Timelines can be tighter for contractor estimates, so book early if you suspect big‑ticket updates.
For new construction, deposit structures and access to inspections can be different. Builders may have their own schedules and requirements. Clarify those details in writing and coordinate with your title company and your agent.
Avoid common pitfalls
- Missing deadlines: even a single day can affect your rights, including your deposit. Set reminders and send notices early.
- Vague repair requests: unclear requests lead to confusion and missed expectations. Write precise scopes and require licensed professionals when needed.
- Skipping specialty inspections: sewer scopes, septic checks, or termite inspections can reveal costly issues. Order them during your window.
- Underestimating competitiveness: in multiple‑offer scenarios, align deposit size and timelines with current market conditions.
Work with a local, principal‑led advisor
Your deposit and inspection period are the first big tests of contract discipline. The right local guidance makes it easier to move quickly, meet deadlines, and keep leverage in negotiations. With principal‑level representation and deep Williamson County experience, you can tailor deposit size, inspection strategy, and repair negotiations to fit both the property and the market.
If you are planning a purchase in Franklin or anywhere in Williamson County, request a private consultation with Greg Sanford. You will get local insight, a clear plan for your deposit and due diligence, and the calm execution you need when the clock is ticking.
FAQs
How much earnest money is typical in Franklin, TN?
- Amounts vary by price and competition. A few thousand dollars is common for modest homes, while higher‑priced homes often see deposits around 1 percent or more of the purchase price.
Who holds earnest money in Williamson County purchases?
- The escrow agent named in your contract holds the funds, often a title or closing company, though a broker trust account may also be used.
How long is the inspection period in Franklin, TN?
- Buyers commonly negotiate 5 to 15 days, with 7 to 10 days often used. Shorter periods can strengthen an offer but leave less time for inspections.
Can I get my earnest money back if I find problems during due diligence?
- If you follow the contract and terminate within the inspection window using the required notice, your deposit is typically refunded by the escrow holder.
What inspections should I consider for a Franklin home?
- A general home inspection plus termite, radon, sewer scope, and septic or well checks as applicable. Add roof, pool, chimney, or HVAC specialists if needed.
What happens if there is a dispute over my deposit in Williamson County?
- The escrow agent will follow the contract. Funds may be held until both parties agree or a court or dispute‑resolution process directs release.
