What Is Due Diligence in NC?

Real estate terms can be confusing—but I’m here to make them simple.
📌 Save this if you’re thinking of buying or selling!

What Is the Due Diligence Period?

The Due Diligence Period is a set amount of time—typically about three weeks (unless the buyer is paying cash, then it may be shorter)—that begins the moment the contract is signed. During this time, the buyer investigates the property and decides whether to move forward with the purchase.

This is the buyer’s chance to:

• Schedule home inspections (general, termite, radon, etc.)
• Get an appraisal (required if getting a loan)
• Finalize loan approval and underwriting
• Have the attorney do title work
• Review HOA rules or restrictions (if applicable)
• Explore insurance quotes, flood zones, permits, and more

The goal? To make sure the home is a good investment and there are no unexpected issues.

What Is Due Diligence Money?

In NC, the buyer offers Due Diligence money to the seller as a show of good faith. This is negotiable and is paid directly to the seller at the time of contract signing.

Here’s what you need to know:

• This money is non-refundable unless the seller breaches the contract
• If the buyer backs out for any reason during the Due Diligence period, they lose that money
• If the deal goes through, the amount is credited toward the purchase price

Example:

You offer $1,000 in Due Diligence money and pay $500 for inspections. If you cancel the deal during Due Diligence, you’re out $1,500.

That’s why buyers must take this period seriously—and work with an experienced REALTOR® to protect their investment.

Why Buyers Should Work with an Experienced REALTOR®

An experienced REALTOR® will:

• Pull comparable sales before you make an offer to ensure your price is in line with the market
• Help negotiate repairs after inspections
• Coordinate with lenders, attorneys, and inspectors to keep everything on track
• Guide you through complex decisions—like when to walk away if something major comes up

A strong REALTOR® knows how to navigate Due Diligence with confidence—and protect your money, time, and peace of mind.

Why Sellers Should Work with an Experienced REALTOR®

Due Diligence is just as important for sellers! A great REALTOR® will:

• Negotiate a fair Due Diligence amount
• Keep your transaction on track and avoid unnecessary delays
• Handle repair requests and negotiations professionally
• Ensure your home is ready for market to avoid surprises during Due Diligence

When sellers work with an experienced agent, the entire Due Diligence process is smoother and less stressful.

Final Thoughts: Handle Due Diligence with Care

This short window of time can have a big impact on your real estate journey. It’s a period where a lot of money is on the line, and critical decisions need to be made.

Whether you're buying or selling, you don’t want to go through this process alone.

🚨 If you're a first-time buyer, be sure to download my free First-Time Homebuyer’s Guide—a step-by-step resource to help you buy with confidence.

📘 Thinking about selling? Grab my Seller’s Guide to learn how to prepare your home, attract top-dollar offers, and avoid common mistakes.

Have Questions About Buying or Selling in NC?

📞 Call or Text: (336) 688-3100
📧 Email: TeresaDavisHomes@gmail.com
🌐 Visit: TeresaDavisHomes.com

I’m here to help you find the right home—and get the right loan!
Let’s make Due Diligence simple and stress-free together.