Mailbag: How Much Will I Need to Pay in Due Diligence?

Are numbers still extreme when it comes to due diligence and earnest money expected? When should you list your home in relation to your neighbor? Angie answers these questions and more on today’s show. 

On today’s podcast, Angie answers four questions from our listeners all about buying and selling a house. Are you facing a similar situation?

Stella in Durham found out their neighbor is planning to sell. Should they list before or after their neighbor? Angie says to try not to list your home at the exact same time. Think about your goals and timeline. If you allow the neighbor to list first, your home might appreciate a bit before listing yours next.

Dan in Cary wants to know if Angie is still seeing rent-back situations. This is when the seller rents back the home after closing. Because it’s a seller’s market, most buyers are willing to do whatever it takes to win the home. Some are even allowing the seller to rent back the home for a few days for free. It all depends on the timing and your circumstances.

Alice in Morrisville asks what the current expectation is for due diligence and earnest money. Angie says it depends on several factors, but they are seeing extreme numbers for these as people try to give the best possible offer. From $15,000 to $100,000 in due diligence, Angie and her team have seen it all lately. The more due diligence you give, the more you convince the seller that you are committed. The average is $20,000 to $25,000 for due diligence these days. There’s a possibility that it could change in the future, but for now, this is the way it works in our state.

Dean in Knightdale has noticed a lot of people are putting large sums of money down without inspections or even sight-unseen. He’s not comfortable with that though and wants to know how detailed he can get in checking out the house. Angie says to look closely and ask about the age of the systems and investigate as much as possible. Step out of the emotional part of buying a home and look at the quality of the home.

Listen to the entire episode or skip to a particular question using the timestamps below. 

0:47 - When should you sell your home if your neighbor is also selling?

2:16 - Are there still rent-back situations?

5:06 - How much should I expect to pay in due diligence and earnest money?

9:56 - Can I check out the home thoroughly before putting in an offer? 


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The Host:

Angie Cole - Contact - Call: 919-538-6477

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