How a Real Estate Transaction Works in North Carolina
Buying a home involves several steps, and I’m here to guide you through each one. Here’s a general overview of what you can expect:
1. Finding the Right Property:
Once we find the property you love, I’ll dive deep into its pricing and research all the available information from the seller and public records.
2. Making an Offer:
Together, we’ll craft an offer using the standard form (2T), with terms that you dictate. After reviewing and signing, I’ll double-check with you before presenting the offer to ensure nothing has changed.
Understanding Deposits: Due Diligence & Earnest Money
When your offer is accepted, there are two types of deposits you’ll need to know about:
• Due Diligence Deposit (DD):
This is a non-refundable fee paid directly to the seller. It shows your commitment to the deal and allows you to conduct inspections. While non-refundable, the DD deposit is credited toward your purchase price at closing.
• Earnest Money Deposit (EMD):
This is a refundable deposit held in escrow by the closing attorney. You’ll get it back if you decide to walk away from the deal during the Due Diligence period. However, after this period ends, you risk losing both the DD and Earnest Money deposits if you terminate the contract. Both deposits are credited to you at closing.
Deposit Type Amount Refundable Purpose When It’s Due
Due Diligence Deposit Set by buyer Non-refundable Commitment to conduct inspections Immediately upon offer acceptance
Earnest Money Deposit Set by buyer Refundable (within DD period) Held in escrow as good faith Within 72 hours of offer acceptance
Inspections: What You Should Know
While not required, inspections are highly recommended. I suggest the “Big 3” inspections:
1. General Home Inspection – A full assessment of the property.
2. Wood Destroying Insect Report (WDIR) – Checks for termite damage.
3. Radon Test – Ensures the air quality in the home is safe.
These inspections cost between $650-$750, and I will walk you through the results. If the inspection reveals any issues, I can help coordinate specialists like electricians or plumbers to investigate further.
During the Due Diligence period, we’ll gather all this information and put together a Due Diligence Repair Request. This is where we ask the seller to either make repairs or provide a credit toward the cost. Keep in mind, sellers aren’t obligated to fix anything, but it’s often in their best interest to address issues. If they don’t and the deal falls through, they’ll have to disclose these problems to future buyers.
The Closing Process
Once the Due Diligence period ends, we move toward closing. If you’re present, great! If not, we can arrange a “Mail Away” Closing, where a Mobile Notary will handle the process, and the documents are sent via FedEx for you to sign and return.
Closing takes place at the office of a local attorney, who will ensure all the paperwork is processed and the property is officially recorded in your name at the Register of Deeds.
Final Thoughts
Buying a home is a major decision, but with the right agent, it can be a seamless and positive experience. I’m here to guide you every step of the way, from finding the perfect home to handing over the keys on closing day. If you have any questions about how I can help, feel free to reach out!
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