NC Due Diligence Fee Explained for Local Buyers

Ever heard that you might write a check you won’t get back when you make an offer in North Carolina? That’s the due diligence fee, and it’s a normal part of buying a home here. If you’re shopping in Lillington or across Harnett County, understanding this fee can help you make a strong offer without taking on more risk than you intend.

In this guide, you’ll learn what the due diligence fee and period are, how they differ from earnest money, what’s typical locally, and how to choose an amount and timeline that fit your goals. You’ll also get a practical checklist for inspections and local records. Let’s dive in.

NC due diligence fee basics

What the fee is and why it exists

The due diligence fee is a negotiated, contractual payment from you to the seller. It compensates the seller for taking the home off the market while you investigate the property and decide whether to move forward. The amount is negotiable, and it is tied to a specific due diligence period written into the North Carolina Offer to Purchase and Contract.

Unless your contract says otherwise or the seller breaches, the due diligence fee is generally non-refundable. If you close, it is typically credited toward your purchase price or closing costs.

What the due diligence period covers

The due diligence period is your defined window to inspect, investigate, and line up your financing. During this time you can order inspections, review disclosures and HOA documents, check permits and records, complete your appraisal, and confirm title and insurance details. North Carolina’s standard contracts and consumer guidance explain how this works in practice. For background on state rules and consumer guidance, see the North Carolina Real Estate Commission’s consumer brochures.

Due diligence vs. earnest money

These two funds serve different purposes:

• Who holds the money

  • Due diligence fee: paid directly to the seller, unless you negotiate something different.
  • Earnest money: held by a neutral party, usually the closing attorney or escrow agent.

• Refundability

  • Due diligence fee: generally non-refundable to you once paid, except if the seller breaches or your contract says otherwise.
  • Earnest money: refundable or forfeitable based on the contract and who breaches.

• At closing

  • Typically both due diligence and earnest money are credited to your funds due at closing if you proceed.

• Signal to the seller

  • The due diligence fee is a stronger immediate signal because the seller receives it right away.

For a high-level look at how funds move at closing, the CFPB’s closing overview is a helpful reference.

Harnett County "norms" for fee and timing

Local market conditions shape what is “typical.” In and around Harnett County: 

• Due diligence period length

  • Commonly 10 to 20 days in many smaller NC markets.
  • Slower markets may see 20 to 25 days.
  • Hot seller’s markets often push for shorter periods, around 5 to 7 days.

• Due diligence fee amounts

  • Balanced competition: roughly $500 to $2,500 on modest-priced homes.
  • Competitive listings: $2,500 to $10,000 or more, especially as price points rise.
  • Lower-priced or slow markets: sometimes as low as $500.

• Earnest money

  • Often 1 to 2 percent of the purchase price, or a flat $1,000 to $5,000. Practices vary by property and market condition.

These are local patterns, not hard rules. Conditions change quickly. Lean on recent comps, days on market, and your agent’s on-the-ground insight before you write an offer.

How to choose your fee and timeline

Think about your goals, the property, and the market. The following are practical starting points you can adjust with your agent’s advice:

• Low-risk, more time

  • Due diligence period: 15 to 25 days
  • Due diligence fee: about $500 to $2,000
  • Earnest money: about $1,000 to $2,000
  • When to use: balanced market, or you prefer more time to investigate.

• Competitive balance

  • Due diligence period: 10 to 20 days
  • Due diligence fee: about $2,000 to $5,000
  • Earnest money: around 1 percent of price or $2,500+
  • When to use: multiple offers likely, you want a stronger signal of interest without extreme risk.

• Aggressive positioning

  • Due diligence period: 5 to 10 days, or occasionally waived
  • Due diligence fee: about $5,000 to $15,000+
  • Earnest money: often 1.5 to 3 percent
  • When to use: highly competitive listing, you are comfortable with greater non-refundable exposure and see few unknowns.

Match your period to your lender’s appraisal and underwriting timelines so you are not forced to decide before critical information arrives.

What to do during your due diligence period

Use the time intentionally. In Lillington and wider Harnett County, property types vary from in-town homes on municipal utilities to rural homes on well and septic. Your checklist should reflect that.

• Before or at acceptance

  • Provide a lender pre-approval or proof of funds.
  • Confirm your closing attorney and how to deliver earnest money.
  • Ask for disclosures, HOA documents, and any septic permit history.

• Within 24 to 72 hours after acceptance

  • Order a general home inspection right away.
  • Schedule specialized inspections as needed: septic, well water quality and flow, HVAC, roof, pest/wood-destroying insect, and structural.
  • If the property is near Cape Fear River tributaries, ask your inspector to review potential floodplain concerns and check FEMA mapping.
  • Align appraisal timing with your due diligence period.
  • For rural homes, contact Harnett County Environmental Health for septic permits and records. You can start with the county’s Environmental Health department.

• Parallel records review

  • Verify deed history and recorded documents through the Harnett County Register of Deeds.
  • For municipal permits and code compliance inside town limits, check with Town of Lillington Planning and Inspections.

• Before the period expires

  • Submit repair requests or credit requests in writing.
  • Decide whether to proceed, renegotiate, or terminate according to the contract.

• At closing

  • Ensure any agreed credits are captured and that your due diligence fee is credited if that is part of your contract.

Negotiation during due diligence

Order inspections quickly and turn findings into written repair or credit requests early. Be specific about repair scope and deadlines. If you and the seller cannot reach agreement by the end of the due diligence period, you can terminate per the contract, understanding the due diligence fee is generally not refundable.

You can also fine-tune your offer strength without overexposing yourself. For example, keep earnest money with the closing attorney so it is held under the contract, and consider using a higher due diligence fee only if the property appears straightforward and your lender can meet the timeline.

Risk management for buyers

• Protect your funds

  • Always verify wire instructions with your closing attorney using a known phone number. Do not rely on emailed wiring details without confirming by phone.

• Document everything

  • North Carolina contracts require written notices for repair requests and termination. Follow all deadlines exactly and keep copies.

• Coordinate your team

  • Stay in close contact with your agent, lender, and closing attorney so appraisal and underwriting do not lag behind your due diligence clock.

Local property considerations in Harnett County

• Rural properties with well and septic often need more testing and record checks. Build extra time into your due diligence period so you can schedule septic pumping, dye tests, or well water lab work.
• In-town Lillington homes on municipal utilities may have fewer unknowns, but you should still review inspection findings, HOA rules if applicable, and permit history.
• Floodplain checks matter for homes near waterways. Ask your inspector and insurance agent to advise you on potential flood insurance implications.

The bottom line

A thoughtful due diligence strategy helps you win in a competitive moment while protecting your budget. Set a fee and period that match the home’s complexity, the speed of the market, and your comfort level. Schedule inspections immediately, confirm records early, and keep your lender and attorney in sync with your deadlines.

When you are ready to craft a strong, clear offer in Lillington, work with a local expert who will guide you through each step. Reach out to Rebekah Edens to talk through your timeline and next steps.

FAQs

What is the North Carolina due diligence fee in a home purchase?

• It is a negotiated payment from you to the seller that gives you a defined period to investigate the home; it is generally non-refundable, but typically credited to you at closing if you proceed.

How is earnest money different from the due diligence fee?

• Earnest money is held in escrow with a neutral party, usually the closing attorney, and is refunded or forfeited based on contract terms; the due diligence fee is paid to the seller and is usually not refundable.

What due diligence period is common in Lillington?

• Many transactions use 5 to 14 days; rural or more complex properties may need longer, and hot listings may require shorter windows around 3 to 7 days.

How much should I offer for the due diligence fee?

• It depends on competition, price point, and your risk tolerance. Locally, fees often range from a few hundred dollars in slower conditions to several thousand dollars in competitive situations.

What should I do first once my offer is accepted?

• Order your general inspection within 24 to 72 hours, schedule any septic or well testing if applicable, align appraisal timing with your due diligence period, and start pulling county records for permits and septic history.