A due diligence fee is money negotiated between a buyer and seller in a North Carolina residential purchase contract in exchange for the buyer's right to investigate the property and decide whether to proceed. It is generally paid directly to the seller and is generally nonrefundable, with very specific exceptions.
Local Data Points
- Current average due diligence fee: due diligence fees vary between contracts and is a negotiable amount between the buyer and the seller.
- Current average due diligence period: due diligence periods are negotiable and can vary due to property type, condition, access to property, availability of inspectors, etc. Generally a two-three week period is
- Median Wilmington sales price: $455,000
Due Diligence vs. Earnest Money
These are not the same thing.
Due diligence fee: generally paid directly to the seller.
Earnest money: generally held in escrow according to the contract.
What Happens During Due Diligence?
Buyers may investigate:
- Home condition
- Pest issues
- Flood exposure
- Insurance
- Financing
- Appraisal
- Survey
- Septic/well
- Title
- Repairs
- Zoning/use
FAQs
Is the due diligence fee refundable?
Generally no, subject to the contract and applicable exceptions.
Can I negotiate the due diligence fee?
Yes.
Can I terminate during due diligence?
Yes! Buyers can terminate during due diligence for any reason, or no reason.
BlueCoast Local Perspective
Due diligence is one of the biggest differences between buying real estate in North Carolina and buying in many other states. Understand it before you sign—not after you have a problem.
BlueCoast can explain how the due diligence structure affects your specific offer.