Due Diligence

North Carolina Offers to Purchase and Contract are now more like commercial real estate contracts in that the buyer pays (a negotiated amount) to have a due diligence period ( a negotiated time) to conduct inspections and/or to consider if they want to move forward.

This is great for the buyer.  While inspections are done, the buyer can really consider at more of a leisurely pace if the property really suits their needs. 

It is good for the seller, too.  After the due diligence period.  Until then, their home is essentially off the market and if the buyers walk they have to start all over again.

To be fair, the buyer has some risk, too. Once they commit, there is no asking for additional concessions as was possible in previous Offer to Purchase and Contract documents.  Too, if they have too long of a due diligence period, the seller (depending on the market and the property) may get additional backup offers making the ability to negotiate for repairs less strong.  Indeed, the backup offer may be better than the buyers own offer.

That said, there is much more uncertainty for the seller.  Knowing whether to start packing, make arrangements for moving and for new housing is difficult without a commitment.  Further complicating this scenario is when the closing date is close to the due diligence date, making this especially challenging.

For sellers with children, elderly parents, or animals, how to proceed during the due diligence period can keep you up at night.  Take heart and take the long view. It is a short period of time in a lifetime.  BREATHE and get ready to pack!