What is due diligence?
Sellers can calm their nerves by ensuring a buyer is less likely to back out, but how is that done?
Transcript
Hey, what's up? This is Tim Clarke, your trusted real estate advisor in the Raleigh-Durham Triangle Market, and this is your free helpful tip and trick from Tim. conduct appraisals, surveys, inspections, and research about the property during this time. A due diligence fee can be negotiated and becomes the property of the seller once the contract is ratified.
Sellers should see this process as one in which the degrees of the reliance they put in completing the sale should be somewhat limited during the due diligence period and then becomes greatly bolstered by the amount of earnest money a defaulting buyer should forfeit when once that time has passed. On the flip side, performance of the buyer is never guaranteed. And this is also different where there's a FHA/VA financing addendum to be used with the contract as it creates an appraisal condition for the buyer that extends until closing. Otherwise, the time of the greatest uncertainty can be reasonably shortened through successful negotiations.
Now, once on the contract, a seller can usually be assured of at least receiving the due diligence fee. This is Tim Clarke, and this is your free helpful tip.
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