Buying A Home –Do Your Due Diligence…. Early!

The North Carolina “Offer to Purchase and Contract” form includes the option to offer a Due Diligence Fee (DDF) to the Seller, due immediately upon full execution of the agreement and it is non-refundable. This has become a major factor when the Seller considers accepting your offer, whether you are the only offer, or one of many in a multiple offer scenario. It is expected that the Buyer will offer a DDF, and a Seller will most likely prefer the highest fee offered, as it indicates how serious the Buyer is about purchasing the home. Even after inspections, if the repairs are modest, or fall under the amount of the DDF, a Buyer is likely to move forward with the purchase regardless of the outcome of the repair negotiations because those monies have already been paid directly to the Seller to keep regardless. So, it is wise to do as much due diligence as possible BEFORE you write an offer on any home. The following is a list of information you should review while a home is in Coming Soon status, or at least before you submit a written offer after viewing the home and deciding it is the home for you!

1. If the property is in an HOA: Obtain and read the Covenants, Conditions and
   Restrictions, the By-Laws of the community, and the most recent monthly financials.
2. Is there a Septic Tank? Obtain a copy of the permit and check the number of bedrooms
   the permit allows. Oil or Propane Tank?
3. The home’s and other building’s (garage, outbuilding, etc.) measurements and square
   footage
4. Survey of the property if a recent one has been obtained by the Sellers.
5. If there are disclosed or appear to be additions, major renovations, or mechanical
   replacements, locate permits for the work on the applicable county website.
6. Request any recent home inspection the owner might have had done either pre-listing,
   or done when they purchased the home if within the last few years.
7. Have a home insurance broker run a C.L.U.E. report to check on the insurability of the
   property, and insurability based on the age of the roof.
8. Research to see if the property is in a FEMA flood zone. There have been updates to the
   FEMA mapping recently, and Sellers with no mortgage may be unaware if their home is
   currently located in a flood zone. Clearing these red flags can help save you the loss of that precious due diligence fee money. You may need to retain that cash to buy another home should the intended transaction not be in your best interest. The Brokers at the Scurlock Agency are experienced in obtaining the information listed above, and much more. This is just a piece of what a Buyer’s Broker does when exclusively representing you -we protect your interests.