Earnest money is a deposit you submit with your offer to show you’re serious. In the Denver metro, the typical range is 1%-2% of the purchase price — on a $600,000 home that’s $6,000-$12,000. The funds go into escrow and are applied to your down payment or closing costs at closing, so it’s not an extra cost.
If you back out during the inspection period (within Colorado’s objection deadline), you get it back. After that deadline without a valid contingency, you typically forfeit it to the seller. In competitive situations, offering a higher earnest deposit (2-3%) signals commitment and can make your offer more attractive even at the same price.