Due Diligence and Earnest Money - Faithe Real Estate

So whether you are a first time home buyer, you are moving to North Carolina, or you have not bought or sold a home in a few years earnest money and due diligence money might be new terms for you. Although the two terms might sound like just another way to throw money into an offer, they are there more to protect both buyers and sellers during the transaction than anything.

As a buyer, you want to ensure that you are given the proper time to check out the home and make sure it is a good investment before you make such a  large purchase. This time (known as the due diligence period) is a set time within the Offer to Purchase contract that allows you to get inspections, appraisals, obtain loan approval, and perform property surveys.

Along with the due diligence time, you have a due diligence fee. The due diligence fee is a negotiable, non-refundable fee a buyer may pay for the negotiated due diligence time period. The due diligence fee is paid directly to the seller.

Before the end of the due diligence period, the buyer has the right to terminate the contract for any reason or no reason at all, while the seller remains bound by the terms of the contract.

While the due diligence period is non-refundable, except in the event a seller breaches the contract, the due diligence fee is typically credited to the buyer at closing.

Earnest money is money that the buyer gives the sellers to show your good faith when making an offer to purchase the seller’s property. Again, the amount of earnest money is negotiable. Most of the time the earnest money is a check written out to a listing agent or an attorney’s trust account (escrow account). As long as you do not default, the money is yours and will be used for closing costs or your down payment at closing. If you do not close, the buyer, may or may not be entitled to a refund of your earnest money depending on why the closing did not occur, the offer to purchase is the guideline.  Here’s the catch, even though it may appear obvious that you are entitled to a refund, both parties (buyer & seller) must sign off on how the earnest money is disbursed before the firm holding the earnest money can release the money.

The contract will always state the final say in all issues regarding the earnest money and due diligence fee. While both fees are negotiable they are not required. Make sure to ask your real estate professional what the local market is trending regarding both fees. 

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crow100bh
May 1, 2021.
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Robbie was amazing. He was able to get us the best sale price possible, and he was very responsive whenever we had questions or concerns during the process. I was also worried that selling would be a big headache, but Robbie and his crew made it super easy for us. We couldn’t be happier!
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April 28, 2021.
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Robbie and his team are incredibly knowledgeable and made buying a home easy. He was always quick to respond and efficient. I would highly recommend working with Robbie!
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April 23, 2021.
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Robbie and his team are very efficient, responsive and knowledgeable. Robbie has exceptional negotiating skills, and finds innovative solutions. I enjoyed my home purchase experience immensely. Thank you!
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April 6, 2021.
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This is the second house Robbie has helped us sell! He is very knowledgeable and professional! Genevieve also helped us a ton with buying our new home! We are so thankful for both of them and what they have done to help our family over the past two years! Thanks Robbie and Genevieve!
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April 5, 2021.
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Robbie exceeded our expectations; he was knowledgeable of the market trends in our area. He realized the square footage of our home in the prior appraisals was lower than the real area and that enabled us to get a better price for the home. We would highly recommend Robbie to anybody interested in selling or purchase a home.
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April 1, 2021.
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forallie
April 1, 2021.
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Robbie was such a pleasure to have as my realtor. He is always patient, kind, and helpful. I'm a first-time home-buyer, so there were a lot of things I needed to learn about and a lot of complicated documents to slog through. Robbie and his team guided me smoothly through the whole process. Robbie has a lot of experience in the Albuquerque real estate market and was able to give me good advice. He always responds to calls, texts, and emails right away, never keeps you waiting. Everyone on his team, from the people in his office to his fantastic loan officer to all the inspectors he lined up for me -- they were all top-notch, professional, and really pleasant to work with.
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John Goen
February 28, 2021.
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Robbie Faithe and Jamie Cline were instrumental in our efforts to find and purchase our first home. Robbie helped strongly negotiate our position in a market that is frankly predatory and outright hostile to homebuyers, especially first-timers with little experience. He helped us move to a swift close while making sure everything was conducted soundly, promptly and with our interests at the forefront. He was supportive of us through the entire process, even after our first negotiations fell through, and was adamant about finding a house that we would truly want, not just the first home that met our loose criteria. Jamie Cline was vital in her role to assist us with booking appointments as well as keeping us apprised of all deadlines and offering advice when we desired. Overall, though this first-time homebuying experience was very stressful at times, Robbie and his team made sure there were as few impediments to the process as possible while making sure we were taken care of. I would definitely recommend their homebuying services and expertise.
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