We thought we would take a few minutes to explain the due diligence process and why a buyer in North Carolina has to write two checks when they make an offer on a property. If you would rather “watch” this explanation than read it, just skip down to the videos below.

Once you and your agent find the property that you are ready to write an offer on your agent is going to ask you to write TWO checks; one to the seller and one to the closing attorney or escrow agent. The first is a due diligence (DD) check and is typically 1/2 % – 1 % of the sales price. This check is written straight to the SELLER and it is exactly what it sounds like; funds to the seller so that you can complete your “due diligence”. During this due diligence period we will help you arrange any inspections you want to have done; including but not limited to a home inspection, a radon inspection, well and septic inspections, lender appraisals, surveys, etc. Per the contract, you are able to terminate your Offer To Purchase ANY time during your due diligence period for ANY reason. Contracts are no longer contingent on home inspections, your loan, or even another house closing. If you as a buyer choose to exercise your right to terminate you dont even have to give a reason, it may even be because you found another house you like better. However, your due diligence funds will not be returned as they were given to the seller at the time of contract to “buy time off of the market”. The seller has lost valuable time off of the market while you were doing your due diligence for their home. However, if you do indeed go to closing on the home, this DD amount is a credit to you at closing.

The second check you will need to write, either at the time of your offer, or if negotiated may be at the end of your due diligence date, is an earnest money deposit (EMD). The EMD says to a seller that you are “earnest” about purchasing their property. This EMD is also typically 1/2 % – 1 % of the sales price, but can be negotiated just like the DD amount. The EMD check is not written to the seller but to the listing company’s trust account, or more commonly to the trust account of the closing attorney that is spelled out on the purchase contract. It is held in escrow until the property either goes to closing or the contract is terminated. If the buyer chooses to terminate the contract in their DD period, per the contract the EMD will go back to the buyer. However, if the buyer ends up terminating the contract AFTER their DD period is over, per the contract, the seller will receive the EMD. This is considered damages to the seller for the buyer breaching the contract, however it does not negate the possibility for any other legal remedy the seller may take for such breach. We like to call the DD date of the contract the “pack up” date for the seller, as they can be assured the buyer has completed their due diligence process and is heading to closing. In addition, just like the DD funds, this EMD is a credit to you at the closing table.

We hope this helps explain why Buyers have to write these checks when they are ready to make an offer on a home. We know this can be a scary and stressful time however Front Porch agents are poised to help you make your home purchase exciting and fun and will help minimize your stress. Having a Front Porch Realty Buyer’s Agent is always absolutely FREE, learn more about Agency relationships in North Carolina HERE.

Contact us today to get started with your home search!

Now more than ever the Triangle Multiple Listing Status of COMING SOON is going to be very helpful for sellers and buyers.

Our local TMLS just released new “rules” for real estate professionals regarding the Coming Soon status for the homes coming on to the active market, and not a minute too late! In no relation to the current Covid-19 crisis, MLS was set to release this new ruling on April 1st. The “old” rule dictated that “Days on Market” would begin to accumulate as soon as a home was entered into MLS, whether it was in “Active” status (available for agents to show their clients) or “Coming Soon” status (not available for showings yet). Anyone that’s been active in the real estate market lately knows this is not good. The homes in Coming Soon status would accumulate Days on Market (DOM), however they were not being able to be shown; when the home status was switched to “Active” it had already accumulated DOM which gave it a “stigma” to a potential buyer of “There must be something wrong with that house, it’s been on the market a week already and hasn’t sold, let’s PASS on seeing this one and move on to the next home”. This predicament was causing homes to be sold without going into TMLS, in other words “pocket listings”. This tactic may have made some buyers, sellers, and real estate professionals happy but this was also causing some sellers to not receive their “highest and best” offer terms, as well as keeping homes “off the market” causing buyers to not have a chance to make an offer.

If you are thinking of putting your home on the market after our immediate threats of Covid-19 are over, let us know! We can get you “on the market” in “COMING SOON” status in MLS complete with a sign in your yard without ever coming in contact with you or any family member! Front Porch Realty agents do this FULL TIME, let us handle these delicate situations for you. We are highly professional and experienced and can make your home selling, or buying, transaction go smoothly even in these unprecedented times. Real estate is deemed an essential service and we have put 3 families in their dream homes just this past week!

Contact us today for details and Stay Safe, hopefully this will all be over soon.

Hot on the market this one will surely not be around long!
This adorable home has large rooms, lots of hardwoods, and is open and bright. The kitchen is beautiful with loads of cabinetry and a large center island.

Austin Farms subdivision does not have an HOA and is located just a few minutes outside the town of Fuquay-Varina.

Offered at $255,000, CONTACT US today for your own private tour.

This 3 bedroom/ 2 bath home was just listed in a convenient Triangle location! Stunning laminate floors in this open, transitional ranch plan. The large living area is open to the kitchen /dining area complete with granite, stainless steel appliances, and custom soft-close cabinets.

Enjoy your rocking chair front porch as well as a screened in porch in the back overlooking your private fenced in yard!

All of this situated on a 1/3 acre cul-de-sac lot and very convenient to the US 70 bypass. Offered at an exceptional price of $227,000.

Contact us today for your private showing. Here is the listing agent, Donya Clark, to give you a sneak peak!

This 3 bedrooom, 2 bath home sits just outside the city of Fuquay-Varina on a beautiful .67 acre lot in the subdivision of Neil’s Crossing .

Pine floors and plantation shutters add to its charm. There is even a gorgeous sunroom for relaxing and entertaining.

With a 1st floor Master Bedroom and 2 niced-sized bedrooms on the 2nd floor this home is offered at an exceptional price of $235,000, it is priced to sell!

Contact us today for your private showing.