Buying a home in North Carolina and keep hearing about the due diligence fee? You are not alone. If you are a first-time buyer or relocating to Jacksonville or greater Onslow County for a PCS, this part of the offer can feel confusing. You will learn what the due diligence fee is, how it works with the due diligence period, typical amounts in Jacksonville, and how to budget and negotiate with confidence. Let’s dive in.
Due diligence fee basics
The due diligence fee is money you offer the seller as part of a North Carolina purchase contract. It is separate from earnest money. You pay it directly to the seller when your offer is accepted to compensate them for taking the home off the market during your due diligence period. It is a negotiated term in the NC Offer to Purchase and Contract, not a government fee or tax.
Here are the key legal effects:
- You pay the due diligence fee to the seller at acceptance or shortly after.
- If the sale closes, the fee is typically credited to the seller at closing.
- If you terminate during the due diligence period, you usually forfeit the fee to the seller.
- If you terminate after the period without a valid contingency, you may also risk losing earnest money or face other contract remedies.
Due diligence vs. earnest money
These two terms go together, but they are not the same.
- Due diligence fee: Paid directly to the seller. Nonrefundable if you cancel during the period. Credited to the seller at closing if you proceed.
- Earnest money: Deposited into escrow with the closing attorney or escrow agent. Usually refundable if you cancel within the due diligence period under the contract. Applied to your purchase at closing.
Think of the due diligence fee as “at‑risk” money during your investigation window, while earnest money is protected by escrow and contract terms.
What happens during the due diligence period
Your due diligence period is the time to investigate everything that matters to your decision. You set this date by negotiation in the contract.
Typical steps you might take:
- Schedule inspections: general home, pest, HVAC, roof, radon, and any needed specialists.
- Review HOA or POA documents, covenants, bylaws, and budgets.
- Order a survey or confirm boundaries.
- Ask the closing attorney to review title and permits.
- Work with your lender on underwriting and appraisal timing.
- Confirm disclosures and plan a walk‑through if needed.
Outcomes during or after this period include:
- Proceed to closing with confidence.
- Cancel within the due diligence period and forfeit the fee while recovering earnest money if held properly.
- Negotiate repairs or credits and sign an amendment if both parties agree.
Typical fee amounts in Jacksonville and Onslow County
Due diligence fees vary across North Carolina. They commonly range from several hundred dollars to several thousand dollars, depending on the home and the market. In multiple-offer situations, buyers sometimes offer higher fees to stand out.
Local factors that can push fees higher in Jacksonville and Onslow County include:
- Proximity to Camp Lejeune: PCS cycles create steady demand and seasonal spikes, especially for entry-level and family homes.
- Inventory and seasonality: Tight inventory or an active spring and summer market can increase seller leverage.
- Property type and condition: Turnkey homes may attract larger fees, while homes needing repairs may see smaller fees or more contingencies.
When budgeting, treat the fee as money you could lose if you walk away during due diligence. As a scale reference, a 0.5 to 1 percent fee can be competitive in hot scenarios. For example, a $2,000 fee on a $300,000 home is about 0.67 percent. Many transactions also use flat fees in the low thousands. Local averages change quickly, so align your strategy with current market data and recent offer trends.
Strategy tips for first-time and PCS buyers
Your goal is to balance a strong offer with smart protection.
- Align with seller priorities: Many sellers prefer a larger due diligence fee and a shorter due diligence period. Offer more of both only if your schedule and financing can support it.
- Keep protections: Choose a period that is long enough for inspections and lender steps, but not longer than you need.
- Separate your strategy: Combine a meaningful due diligence fee with a solid earnest money deposit. Sellers value the immediate fee; earnest money shows commitment and is protected in escrow.
If you are moving on PCS orders or relocating:
- Share timelines early: Provide lender pre‑approval or proof of funds and your target move dates.
- Offer flexibility: Consider a flexible closing date or short leaseback if it helps the seller.
- Choose local expertise: Work with an agent who understands Jacksonville, Onslow County, and common preferences around VA buyers near Camp Lejeune.
In competitive situations:
- Consider a higher fee with a just‑long‑enough due diligence period.
- Prepare to escalate your fee or earnest money if competing offers emerge, but set a personal maximum you are comfortable risking.
If cash is tight:
- Negotiate a slightly lower due diligence fee and strengthen other terms such as a higher earnest money deposit or flexible dates.
- Book inspections as soon as you go under contract to keep your period short without losing protection.
Coastal and flood considerations
In and around coastal North Carolina, confirm risk factors early. Prioritize inspections that address structure, roof, crawlspace moisture, and potential flooding. Ask for any available elevation details and flood mitigation history. Speak with your insurance provider early about insurability and estimated premiums so your due diligence timing aligns with what you learn.
Budgeting steps and sample numbers
Build your plan around total cash at contract and at closing.
Follow these steps:
- Add up your cash on hand for contract day: due diligence fee, earnest money, and inspection costs.
- Choose a due diligence fee you can afford to forfeit if you cancel during due diligence.
- Include inspection and appraisal costs, potential appraisal gaps, moving expenses, and closing funds in your total budget.
Sample scenarios to illustrate scale:
- Lower-competition example on a $250,000 home: $1,000 due diligence fee and $1,000 earnest money.
- Competitive example on a $325,000 home: $3,000 due diligence fee and $5,000 earnest money.
- Percentage view: Around 0.5 percent of price can be meaningful to sellers without overextending many buyers, while some hot situations see slightly higher percentages.
Your mix depends on your cash position, the property, and current local competition. Confirm with your lender and closing attorney how each deposit will be treated at closing.
Buyer checklist before you write an offer
Use this quick list to get organized:
- Confirm available cash for the due diligence fee, earnest money, and inspections.
- Get a lender pre‑approval and gather proof of funds for cash items.
- Decide on your due diligence period and line up inspectors you can schedule fast.
- Ask your agent about current seller expectations for fee size and timelines in Jacksonville and Onslow County.
- Request HOA documents, any recent inspection reports, repair invoices, and information related to flood zones or elevation.
- For military or PCS moves: gather orders and any relocation paperwork that explains your target dates.
Common pitfalls to avoid
- Offering a very small fee in a multiple-offer situation, which can weaken your offer.
- Choosing a too-long due diligence period that frustrates sellers and invites competition.
- Waiting to schedule inspections, which can force an extension or compress your decision window.
- Overlooking flood, crawlspace, or moisture issues that matter near the coast.
- Not syncing appraisal and underwriting steps with your lender’s timeline during your due diligence period.
Local timing and seasonality
Jacksonville’s market can feel very different during peak PCS seasons compared to quieter months. Entry-level and move-in-ready homes may draw stronger offers and higher due diligence fees when many buyers are arriving at once. If you can be flexible with timing, plan your search and contract strategy around inspector availability, lender milestones, and your housing needs so you do not overpay for extra days you do not need.
Your next steps
The due diligence fee is a powerful tool when you understand it. Set a fee that matches your comfort level, choose a due diligence period that protects you, and organize your inspections and financing early. If you are moving to Jacksonville or anywhere in Onslow County, you can make a smart offer that wins without unnecessary risk.
If you would like a tailored strategy for your timeline, budget, and financing plan, connect with a trusted advisor who understands North Carolina contracts and military relocations. Reach out to Theresa Pavone for a warm, high‑touch consultation and a plan that fits your move.
FAQs
What is the due diligence fee in NC?
- It is a negotiated amount you pay the seller when your offer is accepted to compensate them for taking the home off the market during your due diligence period.
Is the due diligence fee refundable in North Carolina?
- Generally no. If you cancel during the due diligence period, you usually forfeit the fee to the seller, while earnest money is treated differently under the contract.
How much are typical due diligence fees in Jacksonville, NC?
- Amounts vary by market conditions, but many buyers offer several hundred to several thousand dollars, with higher fees in competitive scenarios near Camp Lejeune or during peak seasons.
Who holds the due diligence fee and what happens at closing?
- You pay it directly to the seller at acceptance, and if the deal closes the fee is typically credited to the seller at closing per the contract.
How long should my due diligence period be?
- It is negotiable. Choose a window long enough to complete inspections and lender steps, often from a few days to several weeks, while keeping it as short as you can safely manage.
