You've found a home, submitted an offer, and the seller accepted it. Congratulations—you're officially under contract!
But accepting the offer doesn't mean the homebuying process is finished. In many ways, this is when some of the most important work begins.
In North Carolina, the due diligence period gives a buyer time to investigate the property and gather information before deciding whether to continue with the purchase.
During this period, you may choose to have the home inspected, continue working through your financing, learn more about the property's condition, investigate insurance or other concerns, and address questions that come up along the way.
And there's one important thing to remember:
The due diligence period doesn't last forever.
Your purchase contract establishes a deadline, so understanding what needs to happen—and getting started early—can help you make the most of the time you have.
What Exactly Is the Due Diligence Period?
In a typical North Carolina residential purchase contract, the due diligence period is a negotiated period of time during which the buyer has an opportunity to investigate the property and the transaction.
Think of it as your opportunity to learn more about what you're buying.
Depending on the property and your situation, you may use this time to investigate things such as:
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The home's physical condition
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The results of inspections you choose to have performed
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Your financing and loan requirements
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The property's appraised value
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Homeowners insurance availability and cost
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Title or survey matters
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HOA information, when applicable
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Other issues that could affect your decision to purchase the home
Not every buyer will investigate exactly the same things, and not every property will require the same level of investigation.
That's why the due diligence period isn't simply a waiting period between going under contract and closing. It's a time for gathering information, asking questions, and deciding whether you're comfortable continuing with the purchase.
Start Scheduling Your Inspections Early
Once you're under contract, it's a good idea to begin thinking about inspections promptly rather than waiting until later in the due diligence period.
A general home inspection can help you learn more about the condition of the home, but depending on the property, you may decide that additional inspections or evaluations are appropriate.
These might include:
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Wood-destroying insect inspection
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HVAC evaluation
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Roof evaluation
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Plumbing or electrical evaluation
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Well or septic inspection
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Radon testing
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Other specialized evaluations based on the property or concerns that arise
You don't necessarily need every inspection on this list. The inspections you choose may depend on the home's age, features, location, condition, and what you learn during the process.
Starting early can also give you time to receive the reports, ask questions, obtain additional evaluations or estimates if needed, and consider your options before the due diligence period ends.
Some inspections and other services you choose during this period may also involve upfront expenses. If you're preparing financially for the buying process, you may also want to learn more about what out-of-pocket costs you may encounter when buying a home.
The goal of an inspection isn't to find a perfect house. It's to help you better understand the house you're considering buying.
Your Financing Is Still Moving Forward
Even if you were preapproved before making your offer, your lender still has work to do after you go under contract.
Once you have a specific property under contract, your lender can begin working through the next stages of your loan. Depending on your loan and circumstances, this may include requesting updated financial documents, verifying information, ordering an appraisal, and sending your loan through underwriting.
During this time, your lender may ask you for additional information or updated documents. Responding promptly can help keep the loan process moving.
This is also a particularly important time to be careful about making significant financial changes.
Before opening a new credit account, financing furniture or a vehicle, changing jobs, moving large amounts of money between accounts, or making another major financial decision, consider speaking with your lender first. Changes to your credit, income, debt, or available funds could affect your loan qualification.
Preapproval was an important first step, but your financing still needs to make it all the way through the lending process before closing.
The Appraisal Is Different From the Home Inspection
If you're financing your purchase, your lender may require an appraisal as part of the loan process.
It's easy for first-time buyers to confuse the appraisal with the home inspection, but they serve different purposes.
A home inspection is primarily intended to help you learn more about the condition of the property. An inspector may evaluate components and systems of the home and identify items that may need attention or further evaluation.
An appraisal, on the other hand, is an opinion of the property's value performed by a licensed or certified appraiser. Your lender generally uses the appraisal to help determine whether the property provides adequate collateral for the amount being financed.
An appraisal is not a substitute for a home inspection. A home could appraise at or above the purchase price and still have condition issues that an inspection may uncover.
Likewise, an inspection doesn't determine the home's appraised value.
Understanding the difference can help you see why both may play important—but very different—roles while you're under contract.
Investigate Other Property Concerns
The physical condition of the house is important, but it isn't the only thing you may want to investigate during your due diligence period.
Depending on the property and what's important to you, you may also want to learn more about things such as:
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Homeowners insurance availability and estimated cost
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Flood risk or flood insurance requirements
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Property boundaries or survey concerns
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Title matters
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Homeowners association documents, fees, or restrictions, if applicable
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Easements or other matters affecting the property
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Well and septic systems, when applicable
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Zoning or intended uses of the property
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Other property-specific concerns that matter to your purchase
For example, if having room to build a detached garage is important to you, don't assume you'll be able to do it simply because the yard appears large enough. If you're planning a particular use for the property, this is the time to investigate whether that use may be permitted.
Your real estate agent can help you identify questions and point you toward the appropriate professionals or resources, but some questions may require information from an attorney, lender, insurance professional, surveyor, inspector, local government office, or another specialist.
If you'd like a better understanding of your agent's role throughout the purchase, you can also read what a real estate agent does for a homebuyer.
Due diligence is about learning what you need to know before you move forward—not discovering important information after you already own the home.
What Happens If You Discover a Problem?
It's common for inspections and other investigations to uncover items that a buyer didn't know about before going under contract.
Finding a problem doesn't necessarily mean the purchase has to end. Instead, you'll need to consider what you've learned and decide how—or whether—you want to move forward.
Depending on the circumstances, you may decide to:
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Continue with the purchase as agreed
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Ask the seller to make certain repairs
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Ask the seller to provide an agreed-upon financial concession instead of making certain repairs
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Obtain additional information or estimates before making a decision
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Negotiate other changes to the contract
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Decide that you no longer want to move forward with the purchase
One important thing to understand is that a seller isn't automatically required to make repairs simply because an inspection identifies a problem.
You can ask, and your agent can help you communicate and negotiate your request, but the seller may agree to all, some, or none of what you request.
That's one reason it's helpful to look at the inspection results as information rather than simply a list of things the seller must fix.
You'll need to consider what's important to you, the seriousness of the issues you've discovered, the overall transaction, and what you're comfortable accepting.
Your agent can help you understand your options and communicate your decisions, but the decision about how you want to proceed remains yours.
Pay Close Attention to the Due Diligence Deadline
Your purchase contract will identify when your due diligence period ends. This is an important deadline to keep in mind as you work through inspections, financing, and other investigations.
Ideally, you don't want to be making important decisions at the last minute.
Scheduling inspections early can give you time to review the results, ask questions, obtain additional evaluations or estimates when necessary, and discuss any concerns with your agent before the deadline approaches.
It's also important to understand that the due diligence period doesn't automatically extend simply because you're waiting for an inspection, appraisal, estimate, loan decision, or response to a repair request.
If additional time is needed, talk with your real estate agent as soon as possible. An extension of the due diligence period would need to be agreed upon by the buyer and seller and properly documented.
Under the commonly used North Carolina Offer to Purchase and Contract (Form 2-T), a buyer generally has the right to terminate the contract for any reason or no reason during the due diligence period by providing the required notice before the period expires.
Once the due diligence period expires, the buyer's contractual rights and the potential financial consequences of terminating can be different.
That's why the due diligence period isn't just time on a calendar. It's a window of opportunity to gather information, evaluate what you've learned, and make important decisions before the contractual deadline passes.
Use Your Due Diligence Period Wisely
Going under contract is exciting, and it's natural to start imagining yourself living in the home.
But before you get to closing day, the due diligence period gives you an important opportunity to slow down, gather information, and take a closer look at the property you're preparing to purchase.
During this time:
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Schedule the inspections and evaluations you decide are appropriate
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Stay responsive to your lender
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Pay attention to important contractual deadlines
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Ask questions when something isn't clear
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Investigate concerns that are important to you
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Give yourself time to consider what you learn
You don't have to know how to navigate every part of the process on your own. Your real estate agent can help you keep track of the transaction, explain the real estate process, coordinate with other professionals, and help you work through the decisions that arise.
The goal of due diligence isn't to guarantee that you'll discover every possible issue with a property.
It's to give you an opportunity to investigate, ask questions, and make a more informed decision about whether you're comfortable moving forward with the purchase.
Have Questions About Buying a Home in Pitt County?
If you're considering buying a home in Greenville or elsewhere in Pitt County and have questions about the process, I'd be happy to help you understand what to expect.
Denise Davis, REALTOR®
Fresh Start Realty
Serving Greenville & Pitt County, North Carolina
📞 Phone: 252-902-9006
✉️ Email: denisedavis@pittcountyliving.com
