Hendersonville NC Real Estate Blog: Due Diligence in North Carolina

Due Diligence in North Carolina

Due Diligence in North Carolina

Many people who decide to move to Hendersonville, NC from other states are often confused when we get to the contract, and they have to deal with the Due Diligence fee part of the offer. Although I am guessing more and more states are doing this, it is fairly new in how we do it here.

I am wanting to get an idea of how people with this use the fee. In North Carolina a few years back they added a due diligence time frame and an optional fee to give the sellers in essence a 'fee' for the time off the market, while a buyer performs their inspections and appraisals. When it first came into the new Offer to Purchase I believed that the fee was a good idea. I always try to see it from how I would want it to be if I were to sell my own home, or buy a home. 

From a sellers perspective I would want a fee during this process so that if I did take my home off the market (especially in a good market ready to move to the slow time) so that if the offer went south, I would have some compensation for the loss of market time. And if I was a buyer I would of course not want to pay unless I had to. 

But the interesting thing is that I have seen very few agents use this line, whether representing the buyers or sellers. And lately, because buyers now are aware that they can walk away from any offer for no reason at all, they often do, and in some cases with multiple offers! The last few months have seen a large number of sales fall apart. 

I am an agent part time, and I mostly perform admin support for multiple agents in our office. Since I am doing a lot of paperwork, I am seeing a lot of things and this one really stands out. 

I am curious as to whether other agents out there are using the Due Diligence fee as a way to give sellers some protection, and to also ask buyers to be serious when putting forth an offer. Why are you using or not using this fee as a way to keep offers moving forward?

Since I only do a few sales a year, I am really curious and want to do what is right for any clients I work with. I also believe the win-win or no deal motto, and want to be fair to both sides, whether I represent a buyer or a seller.

Can people share your opinions with me on this? I would love some feedback.

Thanks!

Due Diligence in North Carolina

 

Jerri McCombs, Advanced Virtual Assistant 

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Comment balloon 2 commentsJerri McCombs • December 04 2015 03:23AM

Comments

Jerri McCombs this idea of a Due Deligence Fee would not work up here in the Northeast that is for sure. Also on our MLS it goes from 

Active

Pending  

Accepted offers/contract

Sold

 

 

Posted by David Popoff, Realtor®,SRS, Green ~ Fairfield County, Ct (DMK Real Estate ) almost 4 years ago

Hi #David Popoff,

We have the same time line and status in the MLS, but they added this Due Diligence time frame with an optional fee a few years back. I am hesitant to use it with buyers as I know they won't go for it, but in light of the last year of reckless offer, I am starting to reconsider. 

 

Thanks for your input from your area, I am clueless how it works in other states.

Posted by Jerri McCombs, Hendersonville NC Relocation (Hendersonville NC Relocation) almost 4 years ago

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