NC due diligence & closing costs

The two deposits: due diligence fee vs. earnest money

• Due Diligence Fee. A negotiated amount you pay the seller up front for the exclusive right to investigate the home during the due diligence period. It’s generally non-refundable — but it’s credited toward your purchase at closing if you go through with the deal.
• Earnest Money. A good-faith deposit held in trust (usually by the closing attorney or listing firm). Unlike the due diligence fee, it’s typically refundable if you terminate during the due diligence period — and also credited to you at closing.

Neither amount is fixed by law. They’re negotiated, and in a competitive situation a stronger due diligence fee can make your offer win. See the buyer’s guide for how these fit into the offer.

The due diligence period

This is your window to inspect, appraise, secure financing, and investigate anything about the property. If something serious turns up, you can terminate and get your earnest money back (you’d forfeit the due diligence fee). Once the period ends, backing out gets much more expensive — so the timeline matters, and I track it closely.

What buyer closing costs include

Separate from your down payment, closing costs commonly run about 2%–5% of the purchase price — a range, not a promise, since it depends on the loan and the home. They typically include:

• Lender fees — origination, underwriting, and related charges.
• Appraisal and credit report.
• Attorney fees. North Carolina is an attorney closing state — a real estate attorney handles title work and the closing itself.
• Title search and title insurance.
• Recording and government fees.
• Prepaids and escrow — homeowners insurance, property taxes, and prepaid interest set aside at closing.
• HOA transfer fees if the community has an association.

Who pays what — and seller concessions

The buyer usually covers their own closing costs, but you can sometimes negotiate seller concessions — the seller crediting part of your closing costs — as part of the offer. Some down payment assistance programs can also be applied toward closing costs. I’ll help you figure out which levers are realistic for your deal.