Earnest Money vs. Due Diligence Fees in North Carolina

One of the most common questions we hear at Brown-Wright Realty is:

 “What’s the difference between earnest money and due diligence fees in NC?”

Here’s the breakdown:

• Earnest Money Deposit (EMD):
  A good faith deposit (usually 1%–2% of purchase price) held in escrow until closing. Applied to your final costs.
• Due Diligence Fee (DDF):
  Unique to North Carolina! A non-refundable fee (amounts vary, depending on the price of the home) paid directly to the seller. It compensates them for taking the home off the market while you complete inspections and financing.

Key Differences:

• Earnest money = refundable (in most cases) if the deal falls through before the due diligence period ends.
• Due diligence = non-refundable, even if  the deal falls through or you walk away.

Not sure how much earnest money or due diligence you’ll need? Brown-Wright Realty can guide you through local and statewide market standards for both. Contact us today!