Once a buyer settles on a home, they often show their commitment with an earnest-money deposit. But if they’re not careful, they could lose thousands of dollars. Here are the do's and don'ts: Failing to understand exactly what an earnest-money deposit is. It is proof that a buyer is committed to completing the sale. Earnest money is used as credit toward the down payment and closing costs. It’s often a negotiable amount between the buyer and seller and usually about 1 percent to 2 percent of the purchase price, although it could be much higher. Not offering up enough. When a market is competitive, offering more earnest money may be one way to get your offer to stand out. Real estate pro …