If you are buying a home in Jacksonville or anywhere in Onslow County, you will see a “due diligence fee” in most offers. It can feel odd to pay the seller money up front before you finish inspections. You want to know how it works, how it differs from earnest money, and what is typical in this market so you can make a confident offer. In this guide, you will learn the basics, your protections, and practical steps to keep your purchase on track. Let’s dive in.
What the due diligence fee is
The due diligence fee is a negotiated payment that you give to the seller when your offer is accepted. It compensates the seller for taking the property off the market while you complete inspections, secure financing, and decide whether to move forward. If you close, the due diligence fee is credited to your purchase price or closing costs. If you terminate during the due diligence period using your contractual right, the seller usually keeps the due diligence fee.
Because it is non-refundable in most cases, you should pick an amount that reflects your confidence and the level of competition. In strong seller markets, higher fees can signal commitment. In slower markets, you might negotiate a lower fee or a longer timeline.
The due diligence period: your decision window
The due diligence period is a fixed calendar window negotiated in your offer. During this period, you can terminate the contract for any reason if you follow the contract’s notice rules. It is your time to order inspections, review title, confirm insurance, and work through loan approval and appraisal.
If you decide not to move forward and you cancel before the period ends, the seller typically keeps the due diligence fee, and you are generally entitled to a return of your earnest money. After the period ends, your ability to terminate is much more limited and can put your earnest money at risk.
Earnest money vs. due diligence fee
Both amounts show commitment, but they serve different purposes and are handled differently.
- Who is paid: Due diligence fee is paid to the seller. Earnest money is usually deposited with a broker, closing attorney, or other escrow holder.
- Where funds sit: Due diligence fee goes to the seller right away based on the contract. Earnest money is held in a trust or escrow account.
- Refundability: Due diligence fee is typically non-refundable if you terminate during the due diligence period. Earnest money is usually refundable if you terminate within the period or under other contract rights.
- At closing: Both the due diligence fee and earnest money are credited to you at closing.
Who holds funds and when
Your contract sets the timing. The due diligence fee is often due at contract signing or within a short time after acceptance, and it is commonly delivered directly to the seller. Earnest money is typically due soon after acceptance and is held by the listing broker, buyer’s broker, or closing attorney in a trust account. North Carolina settlements are often attorney-led, so confirm with your agent who will hold the earnest money and how you will deliver the due diligence fee.
Your protections and how to use them
During the due diligence period, you have a contractual right to terminate for any reason. Use this time to complete inspections, finalize your loan underwriting, and review the appraisal. If inspection issues arise, you can ask for repairs or credits, or you can cancel before the deadline.
Financing and appraisal should be on a fast track during this window. If financing or appraisal problems appear, your contract and timing will dictate your options. After the due diligence period ends, backing out becomes harder and may put your earnest money at risk.
What is typical in Jacksonville and Onslow County
Contract norms are market-driven and can change with supply and demand. In many local residential transactions, due diligence periods often fall around 7 to 14 days. In very competitive situations, you may see 3 to 5 days. When more time is needed for inspections or complex financing, 21 to 30 or more days can happen.
Due diligence fee amounts vary widely. In North Carolina markets, you will see amounts ranging from a few hundred dollars to several thousand dollars. Higher-priced homes and multiple-offer situations often push the fee higher. Because actual amounts shift with local competition, ask your agent for recent examples in Jacksonville and nearby coastal neighborhoods.
Local factors that shape your offer
Jacksonville’s military presence around Camp Lejeune means many buyers are relocating on tight timelines. VA financing and appraisal schedules can influence how short or long your due diligence period should be. If you need more time for underwriting or appraisal, plan that into your offer.
Coastal considerations also matter. Properties near waterways and low-lying areas may require extra review of flood zones, elevation, wind mitigation features, insurance availability, and permits for past work. These checks take time. You may choose a longer due diligence period or adjust your fee to balance speed with thorough vetting.
Step-by-step checklist for buyers
Before you make an offer
- Ask your agent for current local examples of due diligence fees and periods that are winning offers in Jacksonville and Onslow County.
- Decide how much non-refundable due diligence fee you are comfortable risking if you cancel.
- Confirm who will hold earnest money and your deadline to deliver it.
- Line up your lender, get documents ready, and understand the appraisal timeline.
When you make an offer
- Specify the due diligence fee amount and the exact due diligence period dates.
- Specify earnest money and where it will be deposited.
- If you need time for specific checks, such as septic, elevation, flood insurance, or wind mitigation, make sure your due diligence period covers them or negotiate a longer window.
After contract acceptance: first 72 hours
- Schedule a full home inspection immediately for the earliest possible date.
- Order specialty inspections as needed: septic, mold, structural, pest, wind mitigation, elevation certificate, or flood certification.
- Submit all lender documents and verify the appraisal order and timing.
- Keep proof of payments, deposit receipts, and all communications.
Fraud and wiring cautions
- Confirm wiring instructions with the closing attorney using a verified phone number you locate independently.
- Never rely only on emailed wiring instructions. Always verify before sending funds.
Common scenarios and outcomes
- You terminate within the due diligence period using the proper notice: the seller usually keeps the due diligence fee, and you should receive your earnest money back if it was deposited.
- You close successfully: both the due diligence fee and earnest money are credited to you at closing.
- You attempt to cancel after the due diligence period ends without a contract right: your earnest money may be at risk, and disputes can lead to mediation or legal action. Keep records and follow the contract’s notice rules.
Work with a local advisor you trust
The right guidance helps you balance speed, risk, and leverage. A local expert can show you recent Jacksonville examples, set realistic timelines, and coordinate inspections and lenders so you meet every deadline. If you want concierge support from offer to closing, reach out to Melanie Dunn to talk through your plan and schedule a free consultation.
FAQs
What is North Carolina’s due diligence fee and why is it paid up front?
- It is a negotiated payment to the seller at contract acceptance that compensates them for taking the home off the market while you complete inspections and financing; it is credited to you at closing and usually non-refundable if you cancel during the due diligence period.
How is earnest money different from the due diligence fee in NC?
- Earnest money is held in escrow and is typically refundable if you terminate within the due diligence period under the contract, while the due diligence fee is paid to the seller and usually stays with the seller if you cancel during that window.
What is a typical due diligence period in Jacksonville, NC?
- Many local deals land around 7 to 14 days, with shorter 3 to 5 day windows in hot situations and longer 21 to 30 or more days when inspections or financing are more complex.
How much due diligence fee should I offer in Onslow County?
- It varies with competition and price; you may see a few hundred dollars to several thousand dollars, so ask your agent for recent local examples that match your price point and property type.
Who holds earnest money in North Carolina and when do I pay it?
- A listing broker, buyer’s broker, or closing attorney typically holds it in a trust account, and your contract will set the delivery deadline, which is often soon after acceptance.
What happens if I cancel during the due diligence period?
- If you deliver proper written notice before the deadline, the seller usually keeps the due diligence fee, and you are generally entitled to the return of your earnest money.
What inspections should coastal buyers consider during due diligence?
- In addition to a general home inspection, consider septic, pest, mold, structural, wind mitigation, and flood or elevation-related checks, along with permit verification for recent work.
I am using a VA loan near Camp Lejeune; how should I plan my timeline?
- Coordinate closely with your lender to fast-track underwriting and appraisal so they fit inside your due diligence period, or negotiate a period that accounts for those steps.
