Plain-English answers

Buying

What does a first-time buyer need to know in Charlotte?

Before you make an offer, understand the due diligence fee. This is money paid directly to the seller for the right to cancel during an agreed period. It usually comes back to you as a credit if you close, but you generally lose it if you cancel. Treat it as money at risk.

By Inga Draper, REALTOR® Updated September 3, 2026

01

North Carolina uses two different upfront payments

The due diligence fee pays the seller for giving you an agreed amount of time to investigate the home and cancel. Earnest money is a separate deposit that is usually held in a trust account. It may be returned if you cancel properly and on time. Your signed contract controls what happens to both payments.

02

A stronger offer can also put more of your money at risk

A seller may prefer a higher due diligence fee or a shorter inspection period because those terms give the buyer less room to walk away. A lower fee and more time protect you better. The goal is not simply to win. It is to make an offer you can live with if the inspection or loan brings bad news.

03

Budget the full monthly cost

The loan payment is only part of what the home will cost each month. Add the expenses that change from one property to another.

  • Principal and interest.
  • Property taxes, which vary by county and city or town.
  • Homeowner insurance, which varies with age, roof, and construction.
  • Homeowners association (HOA) dues, plus any special assessments the community has approved or is considering.
  • Mortgage insurance, depending on down payment and loan type.
  • Money set aside for repairs and replacements, even though no bill arrives every month.

04

Use the due diligence period to get answers

Schedule the general home inspection quickly. Depending on the home, you may also need a specialist, a property survey if the boundaries are unclear, permit records for earlier work, and a full review of the HOA documents. Finish any repair discussion before your cancellation deadline passes.

Sources checked

Where this information comes from

These are the public sources used for the facts on this page. Rules and boundaries can change, so the date beside each source shows when it was last checked.

  1. 01 Due Diligence Questions and Answers North Carolina Real Estate Commission Checked September 2, 2026
  2. 02 Due Diligence Fees: When Are They Refunded? North Carolina Real Estate Commission Checked September 2, 2026
  3. 03 Buyer Agency Agreements North Carolina Real Estate Commission Checked September 2, 2026
  4. 04 21 NCAC 58A .0104 — Agency Agreements and Disclosure North Carolina Office of Administrative Hearings Checked September 2, 2026

Common questions

A few more things people ask.

Is the due diligence fee refundable? +

Generally, no. You pay it to the seller for the right to investigate the home and cancel during an agreed period. If you close, it is usually credited toward the purchase. If you cancel, you normally lose it even when you have a valid reason for walking away.

How much should a first-time buyer save beyond the down payment? +

Plan for closing costs, the due diligence fee, earnest money, inspections, moving expenses, and money for early repairs or maintenance. These costs are separate from the down payment.

When should I sign a buyer agency agreement? +

North Carolina requires a written, signed agreement no later than the time you or your agent makes an offer. Before signing, ask what the agent will do, how long the agreement lasts, whether you can work with anyone else, how the agent is paid, and how either side can end the agreement.

Keep exploring

Related questions

View every answer

Relocation

What should I know before relocating to Charlotte?

Read the answer