Buying a home in North Carolina involves a unique step that isn’t standard in every state: the due diligence fee. For many buyers, especially those new to the Triangle area, this can feel unfamiliar. Understanding what the due diligence fee is—and how to navigate the due diligence period—can make the buying process much smoother.
What is Due Diligence?
In North Carolina, due diligence is the period of time after a home goes under contract when the buyer has the opportunity to fully investigate the property. During this window, the buyer can schedule inspections, review title work, confirm financing, and essentially do everything needed to make sure the house is the right fit.
The buyer pays a due diligence fee directly to the seller at the start of this period. This payment compensates the seller for taking the home off the market while the buyer completes their research. If the buyer walks away from the deal during due diligence, the seller keeps that fee. If the purchase moves forward, the fee is credited back to the buyer at closing.
How Much is Typical for a Due Diligence Fee?
The due diligence fee often depends on both the home’s price point and whether multiple offers are in play. For homes priced between $350,000 and $500,000, $5,000 is common if it’s not a multiple-offer situation. Homes priced at $500,000 and above typically see $5,000–$7,000, while properties around $800,000 or more may reach $10,000. As a general rule of thumb, buyers can expect to put down roughly 1% of the purchase price, usually falling within the $2,000 to $10,000 range.
Why It Matters
The due diligence fee is one of the biggest differences between buying in North Carolina versus other states. Because it’s nonrefundable, it adds real weight to an offer. A buyer who offers a higher due diligence fee is often seen as more committed, which can give them an edge in multiple-offer situations.
What Happens During Due Diligence
This time period is essentially the buyer’s safety net. Typical steps include:
Home inspection – To check for structural, electrical, plumbing, or HVAC issues.
Appraisal – Required by most lenders to confirm the home’s value.
Title search – To ensure there are no legal claims or liens against the property.Survey – To confirm property boundaries.
Financing – Final loan approval is usually secured during this time.
Depending on what inspections reveal, buyers and sellers may negotiate repairs or credits. The due diligence period is also when buyers can decide if they want to move forward or walk away—knowing they’ll forfeit their fee if they do.
Timeframe for Due Diligence
The length of this period is negotiable, but it typically runs 2–4 weeks. This allows enough time to schedule inspections and get results back, while still keeping the transaction moving forward.
Balancing Risk and Reward
For buyers, the due diligence process provides peace of mind. For sellers, it offers a measure of security that the buyer is committed. Both sides benefit when they understand how it works and set realistic expectations.
Final Thoughts
The due diligence process can feel intimidating at first, but it’s designed to protect buyers and provide confidence in one of the biggest financial decisions they’ll ever make. Knowing what’s typical for fees, what to expect during inspections, and how to use the timeframe wisely can make all the difference.
At West & Woodall, we guide buyers through every step of the process so they can move forward with clarity. Whether you’re relocating to the Triangle or making a local move, understanding due diligence helps you approach the market with confidence.