Due Dilligence Money For Cary, North Carolina

[Scott Calafiore]

I'm thinking of buying a house in Cary near my brother, not necessarily an investment, but of course I do want to get a good deal. I was planning on doing 10-20% down. Cary is very competitive. My agent suggested that I put 10% as my due diligence to win the property. This is before inspection and really before seeing the property except online. Now I know it's competitive, but I'm curious from someone that has experience in the area if this is normal and actually what it takes to win a property there or if it's just insane to put 10% as due diligence payment?

[Chris London]

@Scott Calafiore,

MLS data below shows signs of a cooling w. the decrease in % of selling price vs list price. As we head into the holiday (Thanksgiving is 10 weeks away) I think you may see houses sell for list price and DD back to a reasonable 1-2%. Meanwhile, there hasn't been a cooling of rental prices in this area as we continue to have a shortage of rentals.

Cary/Apex, <=$350K,Closed, detached & TH, <=2Ksqft
Closed Date	# of properties closed	LP/SP (% of asking)
Jan	83	1.00
Feb	61	1.02
March	98	1.03
April	74	1.05
May	72	1.05
June	77	1.06
July	43	1.07
Aug	57	1.04