If you’re buying a home in North Carolina for the first time, the 12th time or relocating from another state there’s one phrase you’re going to hear early and often and it might feel weird or scary:
“Due Diligence.”
And almost every buyer responds the same way:
“Wait… so I can lose that money?”
Short answer: Yes.
Better answer: Only if we don’t do our job correctly. (side note, in my whole career I can't remember one client ever losing it)
Let me walk you through how I explain due diligence to my clients in plain English without the legal jargon, fear tactics, or pressure.
First: What Due Diligence Is (in Real Life Terms)
In North Carolina, due diligence is a negotiated fee you pay directly to the seller, at the time your offer is accepted in exchange for one very important thing:
Time & control.
During the due diligence period (the time you just bought), you control whether the deal moves forward.
This is the window where you:
At any point during this period, you can walk away for any reason. And...nobody else can swoop in and buy the home because you have it tied up.
The tradeoff?
If you walk, the seller keeps the due diligence fee. Sort of like as a recourse for the potential "damages" they incurred from having their home off of the market for this period of time and then having to go back on the market if the deal didn't go forward. If that happens, some future buyers could view it as a "red flag" that the home went pending and then active again making it more difficult for the seller to get top dollar so this fee eases that blow some.
Here is the Part That Feels Scary (and Why It Shouldn’t)
Most buyers come from states where:
Earnest money is fully refundable
Inspections happen before money is at risk
Due diligence as a concept doesn’t exist
So when buyers hear:
“You might lose this money”
Their brain immediately goes to:
“This feels risky.”
That’s fair.
But here’s the key distinction:
Due diligence isn’t risky when it’s intentional.
It only becomes risky when buyers (and their agents):
Don’t understand the home
Don’t understand the market
Or aren’t properly guided
My job is to remove guesswork from the equation.
How I Help Clients Decide How Much Due Diligence Makes Sense
There is no standard due diligence amount in North Carolina.
It depends on:
What I don’t do:
- Push buyers into aggressive numbers “just to win”
- Treat every home the same
- Use blanket rules
What I do:
- Analyze recent comps
- Assess demand and leverage
- Evaluate inspection & repair risk before we offer
- Talk through best-case, worst-case, and most-likely outcomes
- Advise on current trends
Then we choose a number that:
What Due Diligence Is Not
Let’s clear up a few misconceptions.
Due diligence is NOT:
It is:
A negotiation tool
A way to strengthen your offer
A calculated business decision
One piece of a much larger strategy
Why I Spend So Much Time Here With Buyers
I slow this part way down on purpose. I recognize it's different in NC than many places and I want my clients to feel empowered and educated. I wasn't when I bought my first home and that felt terrible.
Because once due diligence is paid, you should feel confident—not anxious.
If a buyer feels rushed, pressured, or confused at this stage, that’s a sign the explanation wasn’t clear enough or the strategy wasn’t aligned with their comfort level.
Buying a home is emotional.
But this part needs to be thoughtful, informed, and calm.
The Bottom Line
Due diligence isn’t something to fear, it’s something to understand and use wisely.
When explained properly and structured strategically, it:
And most importantly:
You should never feel alone making these decisions.
That’s what I’m here for.
If you’re relocating to North Carolina or buying your first home here and want someone who will slow this down, explain it clearly, and advocate for your comfort, not just the deal, let’s talk.
