Homebuyers in North Carolina have a bit more responsibility than homebuyers in other states. Here’s why.
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In North Carolina, every real estate contract includes a due diligence clause, which usually eliminates contingencies in them. In the past, the purchase of a home was contingent upon inspections, appraisals, financing, etc. But not anymore. Instead, the buyer must do their due diligence during the due diligence period and determine if they are willing and able to move forward with the purchase of the home.
The due diligence fee and due diligence time frame are both always negotiable. During the due diligence period, you’ll need to do three things as a buyer:
1. Obtain financing for your new home. This includes having the home appraised and getting a mortgage approval if you’re taking out a loan or securing funds if you’re a cash buyer.
2. Have the home inspected and agree upon repairs with the seller. Keep in mind that the seller is not obligated to repair all items on the home inspection report or any items for that matter. Repairs are completely negotiable between the buyer and seller.
3. Get any other approvals you might need. These could include HOA approval for a pool, fencing, or any other exterior change. If you plan on doing renovations to the home, you’ll want to have a contractor provide you with pricing estimates for the renovations.
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After the due diligence period, earnest money is non-refundable.
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Once your offer is accepted by the seller, the due diligence money will be non-refundable. Essentially, you’re paying the seller to allow you to confirm you are willing and able to move forward with the purchase of the home at the agreed-upon price.
As a buyer, you want as long of a due diligence period you can get for as little money as possible. As a seller, you want the opposite. The earnest money becomes non-refundable once due diligence ends. During the period, it’s fully refundable to the buyer if they choose to terminate for any reason at all.
After due diligence ends, the buyer and seller can truly begin the moving process. Before that starts, however, it’s time for a final walk-through before closing. This is done for the following reasons:
1. To make sure the home is in the same condition as when you last saw it.
2. To make sure the seller left anything they were supposed to have left in the home.
3. To make sure the seller removed everything in the home they should have taken with them.
4. To make sure all repairs have been completed by the seller.
If you have any questions for me about this topic or about anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
