Have you heard buyers in High Point talk about writing a big check before inspections even start? That is the North Carolina due diligence fee, and it can be the difference between winning a home and overextending your budget. You want to be competitive, but you also want to protect your money and timeline. In this guide, you will learn what the fee is, how it differs from earnest money, typical local ranges, and smart ways to negotiate this winter and spring. Let’s dive in.
What the due diligence fee is
The due diligence fee in North Carolina is a negotiated payment you make directly to the seller when your offer is accepted. It compensates the seller for taking the home off the market while you complete inspections, appraisal, loan approval, and other checks during the due diligence period. The standard North Carolina Offer to Purchase and Contract, often called the 2-T form, spells out this fee and the timelines. There is no set amount by law, so the fee is part of your negotiation.
How the due diligence period works
The due diligence period is a set number of calendar days that you and the seller agree to in the offer. During this window, you can terminate for any reason by written notice. If you cancel during the due diligence period, the seller keeps the due diligence fee. Your earnest money is typically returned according to the contract.
Due diligence vs earnest money
While both are credited at closing, they work very differently.
- Purpose:
- Due diligence fee: Paid to the seller for taking the home off the market while you investigate.
- Earnest money: A good-faith deposit held in escrow under the contract.
- Timing:
- Due diligence fee: Paid to the seller at acceptance, per the contract.
- Earnest money: Deposited with the named escrow agent, such as a brokerage or title company.
- Refundability:
- Due diligence fee: Usually non-refundable once the offer is accepted.
- Earnest money: Typically refundable if you terminate within your contract rights, including during the due diligence period.
What High Point buyers typically offer
There is no standard fee. Amounts vary by price point, neighborhood, property condition, and how competitive the listing is. In the Triad, commonly reported ranges look like this, but treat them as illustrations, not rules.
- Lower-range examples in less competitive situations: about $500 to $3,000.
- Mid-range examples on many single-family homes: about $1,000 to $5,000.
- Higher-range for multiple offers, higher prices, or very short periods: about $5,000 to $15,000 or more. Some buyers use a percentage approach of roughly 0.5% to 1% to stand out.
Seasonal note: Spring activity often increases competition, which can push fees higher. Slower winter periods may allow for lower fees or longer timelines.
Price-point snapshots
- Under $250,000: Buyers often see $500 to $3,000.
- Around $300,000 to $400,000: $1,000 to $5,000 is common, with higher amounts in competitive offers.
- $500,000 and up: $5,000 to $15,000 or a percentage-based offer is more common.
How to pick your number
Start with your risk tolerance. Decide how much non-refundable money you are comfortable putting at stake if you cancel during due diligence. Then look at the home’s condition, how long it has been on the market, and whether there are likely multiple offers. Finally, match your fee to your due diligence period. A higher fee can sometimes support a shorter period. A lower fee often pairs with a longer period when the market allows.
Smart negotiation moves in High Point
You have several levers to balance risk and competitiveness.
- Ask for more time with a smaller fee if the market is not too hot.
- Offer a higher fee with a shorter due diligence period to compete in multiple-offer situations.
- Consider increasing earnest money instead of the due diligence fee to show commitment while limiting non-refundable risk.
- Put repair expectations in writing. You can request repairs or credits, but keep your timelines clear.
- Keep all payment instructions and deadlines in the contract so everyone is aligned.
Use your due diligence period wisely
The value of the fee is the access it buys you to information. Use every day.
- Schedule inspections immediately, including general, pest, and any specialized checks the home may need.
- Order the appraisal early if your lender is ready.
- Get written repair estimates fast to support negotiations.
- Communicate repair requests in writing within your deadline.
- If issues are too costly or the loan does not work, you can terminate within the period. The seller keeps the due diligence fee, but you usually protect your earnest money when you follow the contract.
Real-world examples
These examples are hypothetical to help you plan.
Example A: $275,000 listing
- Offer price: $275,000
- Due diligence period: 14 days
- Due diligence fee: $2,500
- Earnest money: $2,000
- Why it works: Signals serious intent and allows two weeks for inspections. If you cancel in time, you would lose $2,500 but keep your earnest money per the contract.
Example B: Multiple offers at $375,000
- Offer price: $375,000
- Due diligence period: 7 days
- Due diligence fee: $7,500
- Earnest money: $5,000
- Why it works: Strong fee plus a short window can make your offer stand out in competition.
Example C: Need more inspection time, limited cash
- Offer price: $320,000
- Due diligence period: 21 days
- Due diligence fee: $1,500
- Earnest money: $3,000
- Why it works: Longer timeline helps you complete inspections while limiting your non-refundable exposure.
Quick checklist for winter and spring
Use this to prepare and stay on track.
- Before you offer:
- Set a cap on your non-refundable amount.
- Decide your earnest money and confirm the escrow holder.
- Ask your lender how the fee and deposits will appear on your Closing Disclosure.
- When you write the offer:
- Specify the due diligence fee, period length, earnest money, and escrow agent.
- Include deadlines for inspections and any termination notice.
- During due diligence:
- Order inspections right away and line up estimates.
- Keep everything in writing and watch the calendar.
- If you terminate in time:
- Deliver written notice before the deadline to protect your earnest money rights.
- At closing:
- Confirm both the due diligence fee and earnest money are correctly credited on the closing statement.
High Point and Guilford County notes
Neighborhood norms can vary across High Point, and new construction often uses different deposit and option terms. Compare any builder contract to the standard 2-T form and ask questions before you sign. In the Triad, brokers and title companies commonly hold earnest funds. Confirm who holds escrow and how deposits are delivered. Market timing matters. Winter can bring more flexibility, while spring often brings more competition.
Next steps
If you are shopping in High Point this season, a clear fee strategy will help you compete without guessing. You deserve a plan that matches your budget, the property, and the market right now. For calm, step-by-step guidance from offer to closing, connect with Lori Teppara for a complimentary consultation.
FAQs
What is the NC due diligence fee in a home purchase?
- It is a negotiated payment you make to the seller at acceptance that compensates them for taking the home off the market while you complete inspections and other checks during the due diligence period.
How is due diligence different from earnest money in NC?
- The due diligence fee is paid to the seller and is usually non-refundable, while earnest money is held in escrow and is typically refundable if you terminate within your contract rights.
What are typical due diligence fee ranges in High Point?
- Commonly reported ranges vary by situation, from about $500 to $3,000 on the low end, $1,000 to $5,000 for many homes, and $5,000 to $15,000 or more in competitive offers, but there is no set standard.
What happens if I cancel during the due diligence period?
- The seller keeps the due diligence fee, and you typically receive your earnest money back when you terminate properly within the period under the contract.
Is the due diligence fee applied at closing?
- Yes. If you close, both the due diligence fee and earnest money are credited toward the purchase on the closing statements.
Who holds earnest money in Triad transactions?
- The escrow agent named in the contract, often a brokerage or title company, holds the earnest money. Always confirm instructions and request receipts.
Can I get more time without raising my fee?
- Sometimes. You can try negotiating a longer due diligence period with a smaller fee in slower conditions, but sellers in multiple-offer situations may prefer a higher fee or shorter timeline.
