Location: North Carolina
Submitted 08/17/12 05:47 AM

Q. What do you think of the Due Diligence period in our NC Offer to Purchase Contract for Seller's?

 

Answer #1
Submitted 08/17/12 06:17 AM
Carol Fox, Charlotte Neighborhoods, Union County NC Real Estate Broker (Allen Tate Company 704-905-3935): Agent in Matthews, NC Carol Fox, Charlotte Neighborhoods, Union County NC Real Estate Broker (Allen Tate Company 704-905-3935)
Agent
Matthews, NC

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A.

In a buyer's market, the Due Diligence period can be very difficult for sellers because it's not easy to negotiate a due diligence fee that truly compensates the seller for essentially taking his home off the market during this period.  Making a house-to-house move is not easy because of the due diligence period on the seller's existing home and the due diligence period on the next home.

I have a couple of suggestions for sellers in the current market.

  • Try to negotiate the due diligence fee as high as possible.
  • If you are living in the home, try to negotiate enough time between the end of the due diligence fee and the settlement date for you to pack up and move.  I would say at least 15 days but 30 would be better.
  • If you are able to purchase your next home first, you will have an easier move.

When the market turns in favor of sellers, the due diligence periods will become shorter and the fees higher.

Regards,

Carol

Answer #2
Submitted 08/18/12 08:08 AM
John Dotson (Preferred Properties of Highlands, Inc. - Highlands, NC): Broker Owner in Highlands, NC John Dotson (Preferred Properties of Highlands, Inc. - Highlands, NC)
Broker Owner
Highlands, NC

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A.

Personally, I love it.  It puts the buyer in the drivers seat and gives the buyer all the chances he/she can dream of to inspect the house.

If the buyer finds problems they address the seller.  If the seller is willing to work with them, great.  If not, the buyer can choose to walk away or close.

Kinda, in a way, back to caveat emptor.

 

Answer #3
Submitted 09/02/12 11:41 AM
Jason Brodsky (Asheville Holistic Realty at Keller Williams): Agent in Asheville, NC Jason Brodsky (Asheville Holistic Realty at Keller Williams)
Agent
Asheville, NC

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A.

I think that it can be a bit nerve wracking for a seller. Being that the buyer can walk up to 5pm on the end of the Due Diligence date, many sellers are quite anxious up to that moment. I think it's important for a seller (or sellers agent) to ask for a good amount of DD fee along with additional Earnest Monies. Personally, I do not want to submit or handle EM until after the DD date has passed. If I can help answer this in greater detail feel free to get in touch. Jason

Answer #4
Submitted 09/03/12 04:46 AM
Sharon Kowitz Cary NC Your Relocation Specialist (Fonville Morisey-CRS-SRES-ABR-GRI-E-Pro-CREN): Agent in Cary, NC Sharon Kowitz Cary NC Your Relocation Specialist (Fonville Morisey-CRS-SRES-ABR-GRI-E-Pro-CREN)
Agent
Cary, NC

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A.

Thanks for all the great responses, Carol, John and Jason.

 
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