Due diligence deposit in NC?

[Mahmoud Y. Elhalawany]

Hey everyone, my partner and I are trying to put in an offer on a house, the realtor told us that it would be a $500 non-refundable deposit for due diligence, how much is it usually? The house is listed at $65,000 and we are trying to put in an offer for $55,000 

thanks 

[Lisa Hoover]

@Mahmoud Y. Elhalawany

A 'DDD'eposit (Actually think of it as a DDFee) can be anything-- you can offer any $ amount...

But the SELLER has to accept it.

You are asking the seller to take the house OFF THE MARKET for 20? 30? Days... So most sellers want a 'DDF' equal to a month of mortgage payment, that way it helps cover his costs if you back out for no apparent reason.

If you KNOW the house is paid in full... You can offer ~ $200 DDFee.

You can offer to SHORTEN the DD Period( if the water/power utilities are on , see how fast your home inspector can get there for a verbal pass/fail to you ) To be followed by the written report --BE THERE ON SITE DURING THE INSPECTIONS.

Really you have to see what the seller will accept.

What's important to the seller??

Offer to give the seller a written copy of your written home inspection report too

(even if you back out of the deal)

State your case and present to seller's agent for review..

ASK FOR SELLER TO INITIAL ANY OF YOUR WRITTEN OFFERS he rejects as proof he has seen them!

(PS ALWAYS GET ANY COUNTEROFFERS IN WRITING!)

Ask the seller's agent a million questions!

One factor on the seller accepting your lower DDFee is..

How long has the house been listed? Are there 4 other offers on the table?

Perhaps your's or the seller's

re broker is ASKING you for a $500 DDFee because they want to speed the process to get to contract and $500 is a generous fee to show you are serious about closing.

Do you know if yours is the first offer (have any other offers fallen thru?)

Does the seller have in his possession any prior

HOME INSPECTION reports?

Termite/pest inspection reports?

Have you closely reviewed the seller's property disclosure?

Or did he choose 'no answer' because it's a rental or been vacant?

You have lots of options to negotiate with the seller on this.

Of course in NC, if the purchase makes sense and you go thru with the deal, your DDFee is credited to the purchase.

Hope this helps : )

Lisa Hoover

Charlotte