Page 5 - Working With Real Estate Agents for Buyers,Buyers information Packet
P. 5
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This s a summary of how deposits, due diligence, and earnest money work n NC. n he offer,
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there are 3 different dollar amounts hat we will need o nclude.
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The 1 is (of course) he offer price.
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● The 2 is he due diligence ee, and he 3rd s he earnest money. n NC,
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buyers are allowed a certain period of ime, called he due diligence period (which s
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negotiable) o do your nspections, negotiate on any repairs hat are necessary, and o
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get he appraisal done hrough your bank. Within 24 hours of going under contract, we
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will need o deliver he due diligence check o he seller. The amount of his ee s
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negotiable and s determined completely based on he house and f we are competing
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with any other offers. f or any reason you decide o erminate he contract, he seller
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keeps his deposit no matter what. f all goes as planned, then you will get t back as a
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credit owards your down payment and closing costs. We can get nto details of he
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different scenarios of why a buyer would erminate a contract once we start ooking at
homes.
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● Lastly, as or he earnest money, his amount s generally 1%-1.5% of he offer
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price, but his also depends on he situation of he house. Like mentioned with he due
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diligence ee. The earnest money s held n escrow with our closing attorney and s
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refundable during he due diligence period f he contract s erminated. f or some
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reason he contract s erminated AFTER he due diligence period, hen he seller keeps
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this deposit as well. will be perfectly honest hough, he only ime 've seen a contract
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fall hrough after he due diligence period s when a buyer either got extreme cold eet,
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or something crazy happens with heir financing. Again, f all goes as planned, hen
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you will get his money back as a credit owards your down payment and closing
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costs. I know his all sounds a bit much, so please et me know f you have any
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questions.
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We didn't go nto great detail about some of he costs hat are related o purchasing a home, so
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here are some estimated costs or nspections, appraisal, and some other tems. 've ncluded a
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list below of hese tems or you o keep as a reference.
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Home nspection - Between $450-$650 + (depending on size and age of home)
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Termite nspection – Between $90-$125 +
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HVAC nspection - Between $150-$150 + (depending on how many units)
Property Survey (Not Required)- Between $450-$550 + (price varies depending on he size of
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land)- N/A or a condo or ownhome.
Appraisal - This differs depending on which ender you choose, but usually about $425-$550 +
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Attorney Fee - Between $900-$1200 + (this s a closing cost, so his sn't paid upfront)
