This F.A.Q. explains the process of buying real estate in NC, outlines several key considerations & discusses each part of the home buying process in depth. Have a question that’s not answered below?
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- First Time Home Buyer’s Guide [PPT]
- What is Buyer Agency?
- What is Due Diligence & the Due Diligence Period?
- Introduction to Charlotte [VIDEO]
- Charlotte Relocation Guide [PPT]
- North Carolina Contract Timeline Graphic
Scroll down below the definitions for more information about buying a home in NC.
Why use a McDonald Group buyer agent? In 2013, a home buyer using the McDonald Group saved an additional 1.3% off of list price, or 44% more than an average buyer agent. While that might not seem like a lot of money, the savings to you can be substantial.
NC Home Buying Terminology & Definitions
Due Diligence Fee & Due Diligence Period – This is an offer and contract term that is relatively new in NC, we’ve been using it a little over 2 years now. The Due Diligence fee is a fee paid by the buyer to the seller to take their home off the market for the due diligence period. Both the fee & the period of due diligence is negotiable.
Earnest Money Deposit (EMD) – The EMD is a part of the standard contract & is a negotiable fee. This fee is deposited in a trust account managed by the buyer’s attorney. The EMD fee is not at risk during the Due Diligence period. If the buyer chooses to cancel the sale during the DD period, all EMD monies are returned to them. If however the buyer cancels the sale after the DD period (while still under contract) then the seller is entitled to the full EMD amount.
Mortgage Insurance – Also called PMI, is a monthly fee banks charge when you put less than 20% down on a property. What goes into the equation? The city’s real estate market, your credit score & how much you are able to put down on the property will all affect your PMI.