Triangle Diamond Realty Group can help you navigate road bumps in the home buying process. We will be there to help you from the contract negotiation through the inspection and appraisal all the way to the home walkthrough. In a seller’s market where prices are rising, the property appraisal may be lower than a buyer’s offer. This makes it hard for a buyer to secure financing unless they make up the difference. We will help navigate this challenge by asking for assurance that YOU can make up that difference.
Due Diligence vs. Earnest Money
While North Carolina is a buyer beware state, it’s also a due diligence state. That means that you need to pay special attention during showings and also be prepared to make a substantial down payment on the home when you’re ready to make an offer.
Due Diligence is money that goes straight into the seller’s pocket and will not come back to you if you back out of the deal. You will lose that money if you are not careful about the home on which you choose to make an offer.
That’s why your agent will try to point out potential problems with a home before you make an offer. An agent is NOT a home inspector, but they can try to point out anything they see that might pose an issue in the future.
Earnest Money is money that you put down that goes into an escrow account. That money will come back to you if you back out before your Due Diligence Period comes to an end.
These payments, especially Due Diligence, can be the deciding factor for your offer. They buy you time to inspect the home before completing the purchase.
Due Diligence Period
As mentioned above, North Carolina is a buyer beware state; it’s also a due diligence state. When you go under contract, you set a timeline to learn all you can about a home before completing the purchase. This period of time is called your Due Diligence Period.
- Pay careful attention to your emails; that’s how we communicate.
- Schedule and attend inspections (our team can help with this).
- Schedule a survey (our team can help with this).
- Schedule an appraisal (your lender will help with this).
- Speak with an attorney to schedule closing and set up a title search (our team will help with this).
- Provide any and all documents to your lender ASAP
- Hesitate to turn in documents to your lender.
- Expect the seller to fix small items from the inspection report (they will most likely stop all negotiations).
- Try to reschedule inspections at the last minute.
- Disregard your agent’s advice when negotiating repairs.
- Let yourself get CAUGHT UP in minor issues