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Due diligence is basically the process of checking out a property before you make an offer to buy it. During this period, we will check for any potential issues, a process that usually involves things like a home inspection, a pest inspection, and a survey.
Earnest money, on the other hand, is a deposit that you make to show the seller that you're serious about buying their property. If you end up backing out of the deal, you may lose your earnest money.
In other words, due diligence helps you make sure you're not getting stuck with a lemon, and earnest money shows the seller that you're committed to buying their property.
Both diligence and earnest money are credited to the buyer towards the final purchase price.
There’s a lot more to it, but we’re here to help. If you're interested in buying a property here in the mountains, give us a call and we'd be happy to answer any questions you may have.
The following are the most requested basic inspections performed, with cost approximations included. The inspection costs can vary by the size of the home, the difficulty of the inspection, and other mitigating factors.
Home Inspection - $350-$550
WDO/Pest Inspection - $50-$150
Septic Inspection - $150-$250
Water Quality Test - $75-$150
Radon Test - $150-$250
When you're buying a home in North Carolina, the seller usually pays the real estate agent's commission. But that's not always how it works - the details of who pays the commission can vary depending on the terms of the contract between the buyer and seller. It's a good idea to talk to your real estate agent and figure out who will pay the commission before you sign a contract.
When you're buying a home in North Carolina, you'll probably see a document called a HUD statement, which is also known as a settlement statement or closing statement. It's a detailed breakdown of the costs and fees involved in the purchase. The closing agent usually prepares the statement and it includes information on things like the purchase price, the down payment, loan terms, and other costs or fees. The HUD statement is important for both the buyer and the seller because it provides a clear record of the transaction and makes sure everyone knows the terms of the sale.
If you're considering buying a property in North Carolina, you should know about the principle of "let the buyer beware" (aka caveat emptor). Basically, it means that you're responsible for making sure the property is in good condition and suitable for your needs. The seller doesn't have to tell you about any defects or issues, so it's up to you to find and evaluate them. To avoid surprises, you should always inspect the property thoroughly and get a professional evaluation before making an offer.
Keep in mind that caveat emptor isn't always the rule. In some cases, the seller has to disclose certain information about the property to you. For instance, North Carolina law requires sellers to tell you about defects that could affect the property's value, like a faulty roof or plumbing issues. And if the seller knows about any environmental hazards on the property, like lead paint or underground storage tanks, they have to let you know.
North Carolina is a 'Buyer Beware' state, meaning it is your responsibility as a buyer to do your Due Diligence and know everything possible about what you are buying… the Seller is under no obligation based on our NC Purchase contract to make any repairs. Properties are 'As-Is' unless negotiated otherwise.
Because of the Buyer Beware status, North Carolina allows clients to request a period to inspect the property, obtain financing, and prepare for Closing. A client can terminate the contract for no reason until the end of the Due Diligence period.