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Interesting replies. Thanks to all of you. Now, one more question.
I just discovered that NC has something called a Due Diligence fee. I've lived in 10 different states and have never heard of that one before. I have now read up on it. Apparently, it is not applied evenly across the state. What is the normal practice regarding the fee in the Hendersonville area?
The "due diligence" is a term used only in real estate purchasing transactions. The 'due diligence period' is the time between the signing of a purchase and sale agreement to buy the property, and the time the buyer has to do 'due diligence' in getting all the inspections they want to have. The buyer puts up an agreed upon amount of $$ which is held in escrow until due diligence inspections are satisfactory. There is no fixed amount you need to write into the sales agreement. e.g. Home inspection, wood boring insect inspection, mold inspection and so forth. It is set forth in the NC Realtors' Purchase and Sale agreement. If you go to the NC Real Estate Commission website, you can look up and read the NC sales agreement. It is applied across the State because it is law. Every state has different real estate laws; best to have your Realtor or attorney explain it to you.
The "due diligence" is a term used only in real estate purchasing transactions. The 'due diligence period' is the time between the signing of a purchase and sale agreement to buy the property, and the time the buyer has to do 'due diligence' in getting all the inspections they want to have. The buyer puts up an agreed upon amount of $$ which is held in escrow until due diligence inspections are satisfactory. There is no fixed amount you need to write into the sales agreement. e.g. Home inspection, wood boring insect inspection, mold inspection and so forth. It is set forth in the NC Realtors' Purchase and Sale agreement. If you go to the NC Real Estate Commission website, you can look up and read the NC sales agreement. It is applied across the State because it is law. Every state has different real estate laws; best to have your Realtor or attorney explain it to you.
Thanks, but as I said, I read up on it. According to numerous comments by home buyers and Realtors in other web forums, the actual usage varies by area and custom. In other words, in some places in NC the typical due diligence offer is $0.00, while in others it may be a significant amount of money. Since the Asheville/Hendersonville area never specifically came up in those other forums, I am trying to find out what is customary or typical in the Hendersonville area by asking here.
Thanks, but as I said, I read up on it. According to numerous comments by home buyers and Realtors in other web forums, the actual usage varies by area and custom. In other words, in some places in NC the typical due diligence offer is $0.00, while in others it may be a significant amount of money. Since the Asheville/Hendersonville area never specifically came up in those other forums, I am trying to find out what is customary or typical in the Hendersonville area by asking here.
I am trying to answer your question about Due Diligence -- it is not an 'offer'. A Due Diligence amount can be anywhere from $1.00 and up, and your Realtor will advise a fair amount. I have no idea what or where you read up on it. I have given you the best advice possible from over 25 yrs. as a Realtor, and explained that it only applies to the home inspection period. You should either read up on it at the NC Real Estate Commission's website if you haven't already -- or preferably call the local Henderson County Board of Realtors, the link is below, and speak to the Manager, Brenda Jarvis, there for the explanation. Sorry, but I cannot help you understand the process further than I have already explained.
I am trying to answer your question about Due Diligence -- it is not an 'offer'. A Due Diligence amount can be anywhere from $1.00 and up, and your Realtor will advise a fair amount. I have no idea what or where you read up on it. I have given you the best advice possible from over 25 yrs. as a Realtor, and explained that it only applies to the home inspection period. You should either read up on it at the NC Real Estate Commission's website if you haven't already -- or preferably call the local Henderson County Board of Realtors, the link is below, and speak to the Manager, Brenda Jarvis, there for the explanation. Sorry, but I cannot help you understand the process further than I have already explained.
I just want to know what is typical or customary in the Hendersonville area. It's that simple.
I have found that real estate transactions are all open to negotiation. Depending on the particular situation, there may be a due dilligence fee, there may not be, all depending on what the seller and buyer agree on. If it is a seller's market and they have many interested parties, they can easily dictate the terms. In a buyer's market, the buyer typically has more say-so. I had both situations when we were house hunting in the WNC area. It all depends. I find the key is having a good and interested realtor that truly has your back, which, speaking from experience, is hard to come by.
Sorry --but it just depends on the person with whom you are doing business. We paid nothing--but had to sign an agreement as to the length of due dil. You do not lose the money if you do not back out of the deal for no good reason. Buying a home here is not hard if you have good credit. Quilterchick knows what she is talking about and your attitude is unappreciated.
What the hell is wrong with my attitude? I am asking a simple question that any active Realtor should be able to answer. What is usual and customary? Lukasage provided an answer, varies with the property, and I thank him for it.
Sorry --but it just depends on the person with whom you are doing business. We paid nothing--but had to sign an agreement as to the length of due dil. You do not lose the money if you do not back out of the deal for no good reason. Buying a home here is not hard if you have good credit. Quilterchick knows what she is talking about and your attitude is unappreciated.
That is not true. If you don't close, you lose the due diligence money.
The OP didn't ask about how due diligence works, merely what the customary due diligence amount is in the H'vile area. And I agree with the OP, he's not the one with the attitude problem.
I am trying to answer your question about Due Diligence -- it is not an 'offer'. A Due Diligence amount can be anywhere from $1.00 and up, and your Realtor will advise a fair amount. I have no idea what or where you read up on it. I have given you the best advice possible from over 25 yrs. as a Realtor, and explained that it only applies to the home inspection period. You should either read up on it at the NC Real Estate Commission's website if you haven't already -- or preferably call the local Henderson County Board of Realtors, the link is below, and speak to the Manager, Brenda Jarvis, there for the explanation. Sorry, but I cannot help you understand the process further than I have already explained.
We are in our "Due Diligence" period now (as of 9/30), in Hendersonville. We did not offer any money for it when we put in our offer for the land. For us we did not want to risk losing our money is the land did not perk. Also if we did put in any money, it would not go toward the purchase of the land, so basically we would be paying the sellers to take the land off the market while we had to do our test, surveys and whatever else.
We had put an offer in on a different piece of land in Weaverville and the sellers were wanting $500.00 in Due Diligence money, but we never got that far before finding out the land was marsh and we never would have been able to put a house on it. Well, we could have put a house on it, but anytime it rained we would have damage to our house.
I personally would say it is up to you on what you want to offer on due diligence, worst the seller can say is no. More than likely they will counter your offer and if they want a due diligence they will put it in the counter.
The amount of money can vary with the value of the house or property or it can be used an indicator of how serious the buyer is - however - BIG HOWEVER - the buyer does not risk losing the money if they comply with the deadlines of the due diligence period and withdraw prior to the end of that term. So in that regard, you can put of a ton of money that superficially indicates your seriousness as a buyer but you truly have nothing at risk until and if you blow threw your deadline. We just bought property and included a large check with our offer because the property was not on the market and we wanted the owners to know we were truly interested not just tire kickers. We ended up having to extend our due diligence period 3 times (the owners were on board with that since they were the ones nit picking about wording in the contract) and that took a while to straighten out. We had done our due diligence - perk, rough survey to be sure the property conformed as indicated and I can't remember what else and still had to extend the date.
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Thanks to all of you. Now, one more question.
