Thought I’d share a Real Estate change with everyone
Beginning January 1st, 2011 North Carolina is changing the offer to purchase. This effects buyers as well as sellers. The current way the majority of people make a purchase has been eliminated. The only way to make a purchase after Jan 1st is by putting up money for the opportunity to make an offer. Called a Due Diligence Fee, basically you would pay the seller an agreed upon amount for the right to make a decision over a certain period of time. If you purchase the house this money is credited back to you at closing, if you don’t purchase the house the seller keeps the money. The money is only refundable to the buyer if the seller breaches the contract. This is not earnest money…this is an additional amount of money. During this period of time, you must conduct all inspections and research the property.
an example: I want to make an offer on a house. I have to pay the seller for the opportunity to make an offer. This can be any amount that he agrees to, including $0 (if he agrees) for any amount of time. Lets say He agrees to $500 for 1 week. I must conduct all my inspections and research of the property in the one week and make my decision whether I want to buy his house based on the results. If I don’t buy his house for any reason, seller keeps the $500. If I continue with the purchase the $500 gets credited back to me at closing.
This is still pretty new to all of us, so don’t feel silly about asking questions. We’ll find out the answers for you.
****UPDATE****
No worries…it’s so drastically a buyer’s market that sellers are accepting zero dollars as the “due diligence” fee. Sellers these days are just happy to get an offer at all. But when the tide turns to a sellers market it will be a whole different story!!!
Dawn Judge, Broker/REALTOR® 704-929-2261 Home Advantage Partners Meet me on Facebook, WordPress, Twitter, LinkedIn and HomeAdvantagePartners.com!
Keller Williams Lake Norman-Mooresville 118 Morlake Dr Suite 100 Mooresville, NC 28117 No matter where in the world you are, I can get you the best real estate assistance in your area through our vast network!
