Can a builder's earnest money deposit be negotiated down or gotten back if the deal falls through?

Two separate questions, two different answers: getting a builder deposit back is rare, and negotiating it down depends on the builder's leverage. Getting the deposit back if the deal falls through: rarely. New-construction contracts are written by the builder rather than on the standard state purchase agreement most resale deals use, and they're drafted to protect the builder. In practice, deposits usually come back only when the builder can't perform their side, essentially when there's no house to deliver. Builders are not in the business of refunding deposits, so don't assume you can walk away and recover yours. Negotiating the deposit down before you sign: sometimes. If the builder's homes are selling fast with strong demand and little inventory, you'll likely take their terms as written. If homes are sitting, you have more room to push, on the deposit amount and on other terms. The bigger issue is usually the non-refundable language itself, more than the dollar amount. Read the entire contract carefully before you commit, because these documents skew hard toward the builder. And use your own real estate agent instead of dealing with the builder's sales rep directly. You want someone advocating for you and reading that contract with a trained eye. Buyer-agent compensation is negotiable under the current rules, so sort that out early, but having representation on a builder contract is well worth it.