Due Diligence is a negotiated period of time in which the buyer has the unilateral right to investigate a property. This time is used to conduct inspections, obtain appraisals, and secure loan approval. During this period, the buyer can terminate the contract for any reason (or no reason at all).

Due Diligence fees are always negotiable. Because of this, they fluctuate significantly across market conditions, locations, property types, and price points. There is no standard fee; the amount is a market-driven variable that depends entirely on current inventory and competition.

By default, the fee is non-refundable. If you choose to terminate the contract during the due diligence period, the seller keeps the fee. There are extremely limited legal circumstances—primarily involving a material breach of contract by the seller—where the fee might be recoverable. Because this involves complex legal interpretations, any attempt to recover a fee due to a seller default should be handled in consultation with a licensed North Carolina real estate attorney.

If the transaction moves forward to a successful closing, the Due Diligence fee is credited toward the purchase price of the home, appearing as a line-item credit on your closing disclosure.

Due Diligence is a negotiated period of time in which the buyer has the unilateral right to investigate a property. This time is used to conduct inspections, obtain appraisals, and secure loan approval. During this period, the buyer can terminate the contract for any reason (or no reason at all).

The DD fee is always negotiable. We have seen contracts with a $0 Due Diligence fee and others where the fee covered the entire purchase price of the home.

A true “average” depends entirely on the price point and the location at a minimum. Factors such as Days on Market (DOM), the presence of competing offers, and property characteristics are all variables we take into consideration with your offer.

Much like the price, I provide suggestions and ranges—sometimes in a Good-Better-Best layout—so that you can make an informed decision. While I provide the infrastructure and market context, the buyer always makes the final decision. It is a consequential variable.

If an appraisal comes in lower than the purchase price, the buyer must typically negotiate a price reduction with the seller or cover the “gap” in cash. If an agreement cannot be reached and the buyer chooses to terminate, the Due Diligence fee remains non-refundable. This is why auditing comparable sales data before making an offer is a critical part of my logistical process.

No. According to the standard North Carolina Offer to Purchase and Contract (Form 2-T), the property is technically sold in its current condition (“as-is”) at the time of the offer. While you have the unilateral right to request repairs or a price reduction during the Due Diligence period, the seller is not legally obligated to perform them.

However, most sellers are willing to negotiate reasonable repairs to keep the transaction moving toward a successful closing.

View a sample of the NC 2-T Contract here →

The fee is typically due immediately upon the effective date of the contract. In most modern Triangle transactions, this is handled via a secure electronic portal or a physical check delivered directly to the listing firm or the seller. Unlike Earnest Money, this money goes straight to the seller’s pocket.

By default, the fee is non-refundable. If you choose to terminate the contract during the due diligence period, the seller keeps the fee. There are extremely limited legal circumstances—primarily involving a material breach of contract by the seller—where the fee might be recoverable.

If the transaction moves forward to a successful closing, the Due Diligence fee is credited toward the purchase price of the home, appearing as a line-item credit on your closing disclosure.