The cash needed to buy a Wilmington home depends on the loan program, purchase price and transaction terms, but buyers generally need funds for a down payment, due diligence fee, earnest money deposit, inspections, appraisal and closing costs. Buyers should also maintain cash reserves rather than putting every available dollar into the purchase.
Local Data Points (market statistics via HiveMLS and based on sold residential property YTD in Wilmington, NC)
- Wilmington median sales price: $460,000
- Typical buyer closing costs: these vary from purchase to purchase depending on financing costs, taxes, insurance and title work.
- Current average due diligence fee: varies per transaction because it is negotiable.
Potential Upfront Costs
Down payment: Varies by financing program.
Due diligence fee: Negotiated between buyer and seller under the contract.
Earnest money: Negotiated and typically held in trust according to the contract.
Inspections: Home, pest, structural, septic, well and other inspections may apply.
Appraisal: Often required by lenders.
Closing costs: May include lender, attorney, title, recording and prepaid expenses.
Your REALTOR® will be able to give you timely estimates based on the property and loan program during your buyer consultation.
Wilmington-Area Difference: Coastal purchases may require additional due diligence involving:
- Flood insurance
- Wind/hail coverage
- Elevation
- Moisture
- Roof condition
- HVAC
- Structural exposure
Those costs should be included in the purchase budget. Read more about due diligence here!
FAQs
Do I need 20% down?
No. Often loan programs allow lower down payments.
Is due diligence money refundable?
Not typically. By definition in the standard contract it is a nonrefundable fee, but there are exceptions.
Should I spend all my cash on the down payment?
Usually, maintaining adequate reserves is important, and consulting with your lender will help you find the best route forward.
BlueCoast Local Perspective
The goal isn't to get to closing with exactly $0 left in your checking account. That's a terrible housewarming gift.