Are you hearing “due diligence fee” as you prepare to buy a home in Concord and wondering what it really means? You are not alone. Many buyers mix it up with earnest money and are unsure how much to offer or how long the due diligence period should be. In this guide, you will learn what the fee covers, how it differs from earnest money, common timelines in Cabarrus County, and smart ways to structure your offer. Let’s dive in.
Due diligence fee, explained
In North Carolina, the due diligence fee is a negotiated payment from you to the seller at contract acceptance. It gives you an exclusive window to inspect the home, confirm financing, and decide whether to move forward. The fee compensates the seller for taking the home off the market while you investigate. The North Carolina Offer to Purchase and Contract sets out the due diligence period and fee as standard terms.
How it works in NC offers
You and the seller agree on two things: the fee amount and the length of the due diligence period. During that period, you can terminate for any reason. If you terminate within the period, the seller typically keeps the due diligence fee. Exact outcomes depend on the contract, so make sure the terms are clear before you sign.
Who holds the funds
The due diligence fee is often delivered to the seller once your offer is accepted. In some cases the parties agree to route it through a closing attorney or other holder. The contract should state who receives it and when.
Due diligence vs. earnest money
These two deposits serve different purposes and follow different rules:
Purpose
- Due diligence fee: Paid to the seller for your right to investigate and, if needed, terminate during the due diligence period.
- Earnest money: A good‑faith deposit that shows commitment to the purchase and is credited to you at closing.
Where funds go
- Due diligence fee: Commonly delivered to the seller after acceptance, unless the contract specifies escrow handling.
- Earnest money: Typically held in escrow by a closing attorney or other escrow agent per the contract.
Refundability
- Due diligence fee: In most cases it is non‑refundable once paid, even if you terminate during the due diligence period, unless the contract says otherwise.
- Earnest money: Usually returned to you if you terminate properly within the due diligence period. If you breach after the period ends, the seller may claim it as provided in the contract.
How much in Concord?
There is no set amount in Cabarrus County. Fees vary with price point, property condition, and how competitive the Concord and Charlotte‑area market is at the time of your offer. When inventory is tight or there are multiple offers, sellers may expect higher due diligence fees and shorter periods. Work with a local agent to gauge current norms in your target neighborhood.
Here are illustrative examples to help you think through strategy:
- Low‑competition setting, lower‑priced homes: buyers may offer a modest fee (often a few hundred dollars).
- Balanced setting or mid‑priced homes: buyers often choose mid‑range fees (from a few hundred up to a few thousand).
- Highly competitive, multiple‑offer situations: buyers may offer larger fees (multiple thousands) and shorter due diligence periods to stand out.
These are examples only. Your final number should reflect your budget, the home’s condition, and the level of competition on that specific property.
How long is the period?
Typical timelines in Concord
Due diligence periods commonly run from several days to a few weeks. Many resale transactions use 7 to 14 days. Homes with septic systems, wells, new construction, or complex issues may require 14 to 30 or more days to complete testing and reviews. Shorter periods can make your offer more attractive but reduce your time to inspect and finalize financing.
If you need more time
You can ask the seller to extend the period, but the seller does not have to agree. Extensions may require an additional fee or other concessions. If you think you will need more time for inspections or the appraisal, negotiate that up front.
What to do during due diligence
Use your time wisely so you can make a confident decision before the deadline.
- Order a general home inspection right away.
- Schedule specialty inspections as needed: roof, HVAC, structural, radon, pest, mold, septic, or well testing.
- Ask for HOA or POA documents and covenants immediately, if applicable.
- Engage a closing attorney to start the title search and review easements or liens.
- Work with your lender on final approval and the appraisal timeline.
- Consider a survey if boundaries or setbacks matter to your plans.
- Check permits, zoning, or code records with the City of Concord or Cabarrus County if you plan improvements.
First 72 hours
- Lock in the general inspection and any urgent specialty inspections.
- Request HOA documents and begin your review.
- Confirm your closing attorney is engaged and the title search has started.
By day 7
- Receive inspection reports and prioritize repairs or credits.
- Verify the appraisal is ordered and scheduled.
- Evaluate septic, well, or environmental results if applicable.
Before the deadline
- Finalize repair requests or credits with the seller.
- Confirm loan conditions and any remaining documents.
- Decide whether to proceed or terminate before the period expires.
Risk and offer strategies
- Balance fee size with risk. A larger due diligence fee can strengthen your offer, but you should be comfortable with the possibility of losing it if you terminate.
- Match the period to the property. Older homes, septic systems, or complex repairs may need more time. A too‑short period can add pressure and risk.
- Coordinate with your lender early. Appraisal and underwriting timelines can affect how confident you feel about a shorter period.
- Clarify who holds each deposit. State in the contract who receives the due diligence fee and who holds earnest money to avoid confusion.
- Remember that after the due diligence period ends, your ability to terminate is limited by the contract. Make decisions before the deadline.
Local checkpoints and records
If you are buying in Concord or elsewhere in Cabarrus County, you may interact with:
- City of Concord Planning and Inspections for permits and code questions.
- Cabarrus County Planning and Zoning for county approvals.
- Cabarrus County Health Department for septic or well records and testing guidance.
- Cabarrus County Register of Deeds for deed and title records.
- Local closing attorneys and title companies for escrow handling and title review.
Get local guidance
Every offer is a balance between being competitive and managing risk. A local advisor who negotiates Concord and Cabarrus County contracts every day can help you choose a due diligence fee and timeline that fit your goals and the current market. If you are ready to buy or want to discuss strategy for a specific property, reach out for a tailored plan.
Have questions about your next move in Concord? Connect with Kirk Hanson for clear guidance and a concierge‑level experience from Coldwell Banker CK Select.
FAQs
What is the due diligence fee in NC?
- It is a negotiated payment to the seller at contract acceptance that gives you an exclusive period to inspect and, if you choose, terminate the contract.
How does due diligence differ from earnest money?
- The due diligence fee goes to the seller and is usually non‑refundable, while earnest money is held in escrow and is typically credited to you at closing and returned if you terminate within the due diligence period.
If I terminate during the period, do I get my money back?
- In most cases the seller keeps the due diligence fee and your earnest money is returned, but the contract controls the final outcome.
Who holds the due diligence fee in a Concord sale?
- Many contracts direct payment to the seller upon acceptance, though parties can agree to escrow through a closing attorney; your contract should specify handling.
How much due diligence fee should I offer in Concord?
- There is no fixed number; amounts vary with price point and competition, so work with a local agent to align your fee and period with current conditions.
What if inspections find major issues?
- You can negotiate repairs or credits, adjust price, or terminate within the due diligence period and accept the likely loss of the due diligence fee if you walk away.
