Your offer was accepted. Congratulations.
But do not start ordering furniture yet. The house is not yours.
The time between contract and closing is when the inspections, appraisal, loan, insurance and title work all happen. It is also when missed deadlines and financial mistakes can cost buyers real money.
Here is what happens after your offer is accepted on a home in North Carolina.
Quick answer: What happens after your offer is accepted?
After your offer is accepted in North Carolina, you will generally need to:
Deliver your due diligence fee and earnest money deposit
Schedule inspections immediately
Review the inspection report and negotiate any repair requests
Complete the loan and appraisal process
Arrange homeowners insurance
Allow the closing attorney to complete the title search
Review HOA information, if applicable
Complete a final walkthrough
Sign the closing documents
Wait for the deed to record before receiving the keys
The exact process depends on your signed contract, loan type and any addenda attached to the offer.
What happens immediately after an offer is accepted?
Once the buyer and seller sign the contract, the contract becomes effective.
Your real estate agent will send the signed contract to the closing attorney, lender and anyone else involved in the transaction.
You will also need to deliver two negotiated deposits:
The due diligence fee
The earnest money deposit
These payments are not the same. Buyers moving from another state are often surprised that North Carolina commonly uses both.
For a deeper explanation, read my guide to due diligence and earnest money in North Carolina.
What is the North Carolina due diligence fee?
The due diligence fee is paid directly to the seller.
In return, you receive a negotiated due diligence period to investigate the property and decide whether you want to complete the purchase.
During that period, you may:
Inspect the home
Work through your loan approval
Complete the appraisal
Check homeowners insurance
Review HOA information
Investigate the property
Decide whether you still want to buy the home
The due diligence fee is normally credited toward your purchase at closing.
However, if you terminate the contract, the seller will typically keep that money.
Think of it as money paid to the seller for taking the property off the market while you investigate the purchase.
What happens to the earnest money?
Earnest money is normally held in a trust account by the closing attorney, real estate firm or another escrow agent named in the contract.
It is also credited toward your purchase at closing.
If you properly terminate during the due diligence period, you can generally recover your earnest money. If you wait until after the due diligence deadline, that money may also be at risk.
Under the standard North Carolina contract, the due diligence period ends at 5:00 p.m. on the date written in the contract.
It does not end at midnight.
Do not assume the seller will extend the deadline because an inspection, appraisal or loan approval is taking longer than expected. An extension must be requested, agreed to and put in writing.
Your signed contract controls the exact deadlines and terms of your purchase.
When should you schedule the home inspection?
Immediately.
The due diligence clock is already running once the contract becomes effective.
Depending on the property, you may need more than a general home inspection. Additional inspections or tests may include:
Wood-destroying insect inspection
Radon test
Sewer scope
Septic inspection
Well-water test
Structural evaluation
Roof inspection
HVAC evaluation
Plumbing or electrical inspection
Not every property needs every test. A home on city water and sewer will have different concerns than a rural property with a well and septic system.
The goal is to understand what you are buying before the due diligence period ends.
Should you worry about a long inspection report?
Do not panic when the inspection report arrives.
It may be 50 pages long and feel like 500.
Inspectors document everything they see. Some findings may be minor, such as a loose doorknob or a toilet that does not flush properly.
Other findings may need immediate attention, including:
Active water intrusion
Roof leaks
Electrical hazards
Plumbing leaks
Structural movement
Crawl-space moisture
Heating or cooling problems
The goal is not to demand that the seller make the house brand new.
The goal is to separate ordinary maintenance from items that could affect your safety, budget or the value of the property.
Does the seller have to make repairs?
No.
The standard North Carolina contract is generally an as-is contract. That means the seller is not automatically required to repair everything found during an inspection.
But as-is does not mean you cannot ask.
Depending on the findings, a buyer may request:
Specific repairs
A closing-cost credit
A price adjustment
Another negotiated solution
For larger concerns, it may make sense to bring in a qualified roofer, plumber, electrician, structural engineer or other contractor.
An inspector identifies possible issues. A specialist may be needed to determine the extent of the problem and the likely cost to correct it.
Sometimes a specialist says the item is working properly and does not need repair. Other times, the problem is worse than it first appeared.
Get the facts before deciding what to request.
You also need to leave enough time for the seller to review your request, respond and complete any negotiations before the due diligence period ends.
Charlotte buyers may have more room to negotiate when homes are sitting longer. Read more about how Charlotte buyers can use their current leverage.
What happens if the appraisal is low?
While inspections are happening, your lender will continue processing the loan and order the appraisal.
The inspection and appraisal serve different purposes.
A home inspection looks at the condition of the property.
An appraisal helps the lender determine whether the property supports the contract price.
If the appraisal comes in lower than the purchase price, the buyer and seller may need to renegotiate.
Possible options may include:
The seller lowers the price
The buyer brings additional money
The parties meet somewhere in the middle
The buyer challenges legitimate errors in the appraisal
The transaction terminates
Your options and protections can depend on the loan type, contract terms and any addenda attached to the offer.
That is why the appraisal should be ordered as early as possible.
An appraisal problem discovered after the due diligence deadline may put more of the buyer’s money at risk.
What should you avoid while waiting to close?
Do not make major financial changes while your loan is being processed.
Avoid:
Opening a new credit card
Financing furniture
Buying or leasing a car
Co-signing a loan
Changing jobs without speaking to the lender
Moving large amounts of money between accounts
Depositing cash that cannot be documented
Your financial situation should look basically the same on closing day as it did when you applied for the mortgage.
Your lender may check your credit, employment, income and bank accounts again before closing.
That new living-room set may be on sale. It is still not worth losing the house over.
You should also respond quickly when the lender asks for documents. A missing pay stub, bank statement or explanation can delay the loan and possibly the closing.
Still trying to understand your budget or down-payment options? Read about buying a Charlotte home with a low or no down payment.
What does the closing attorney do?
In North Carolina, the closing attorney handles several important parts of the transaction.
The attorney will generally:
Research the title
Identify liens or ownership problems
Coordinate with the lender
Prepare the closing documents
Receive the buyer’s funds
Record the deed
Disburse the money after closing
The title search helps confirm that the seller can legally transfer the property and identifies problems that must be resolved before closing.
Buyers should also discuss title insurance with the closing attorney. Title insurance can provide protection if certain ownership or title problems are discovered after the purchase.
When should you get homeowners insurance?
Start shopping for homeowners insurance early in the process.
Do not wait until the day before closing.
You need to confirm that:
The property is insurable
The premium fits your budget
The coverage meets the lender’s requirements
There are no major property issues affecting coverage
Insurance costs can vary based on the home’s age, roof, claims history, location and other factors.
The mortgage payment quoted by your lender may change once the actual insurance premium is added.
What should you review if the home has an HOA?
Review the available HOA documents, dues, rules and assessments.
Important items may include:
Monthly or annual dues
Rental restrictions
Pet rules
Parking rules
Architectural restrictions
Pending special assessments
Community maintenance responsibilities
Pool, clubhouse or amenity rules
Do not assume every HOA operates the same way.
The due diligence period is not only for inspecting the physical house. It is your opportunity to investigate the entire purchase.
If you are moving from outside the area and still comparing locations, start with my honest guide to moving to Charlotte, including the costs, traffic and neighborhood trade-offs.
What happens during the final walkthrough?
The final walkthrough normally takes place shortly before closing.
Do not skip it.
This is not a new inspection or another chance to renegotiate items you already accepted.
The purpose is to confirm that:
The home is in substantially the same condition
The seller has moved out
Agreed-upon repairs have been completed
Included appliances and other items are still present
No new leaks or damage have appeared
The water, lights and major systems are functioning
The seller has not left unwanted belongings or debris
If something major has changed, you want to know before closing.
Once you own the house, the problem may become yours.
When do you receive the keys?
Before closing, the attorney will provide the final amount of money you need to bring.
Most buyers send their funds by wire before closing or early on closing day.
Always call the attorney’s office using a trusted phone number to verify the wire instructions.
Do not rely on unexpected or last-minute wiring instructions sent by email. Real estate wire fraud is real, and a fraudulent wire can be extremely difficult to recover.
At closing, you will sign the loan and purchase documents.
But signing the papers does not immediately mean you receive the keys.
The closing attorney must confirm that all required funds have arrived and record the deed with the county. In the Charlotte area, keys are generally released after the deed has recorded.
Once that happens, congratulations.
Now the house is yours.
Need help buying a home in Charlotte?
Buying a home involves more than finding a property and writing an offer.
The deadlines, inspections, financing and negotiations between contract and closing can have a major effect on your money and your purchase.
Download my free Charlotte Homebuyer Guide to learn:
How North Carolina due diligence works
What your real monthly payment may include
When it may make sense to walk away
How to write a competitive offer without taking unnecessary risks
You can also contact me directly if you are planning a move or need help understanding the North Carolina home-buying process.
I’m Maureen Mahood, broker-owner of Sell Your Home Charlotte. I help buyers and sellers throughout the Charlotte metro make better real estate decisions.
This article provides general information. Your signed contract, loan type and attached addenda control the terms and deadlines of your transaction.
Frequently Asked Questions
Can a buyer cancel during the due diligence period in North Carolina?
A buyer can generally terminate during the negotiated due diligence period by following the notice requirements in the contract. The seller will typically keep the due diligence fee, while the earnest money may be returned. The signed contract controls.
Is the due diligence fee refundable in North Carolina?
The due diligence fee is normally credited to the buyer at closing. If the buyer terminates, the seller will typically keep it. There are limited situations where the contract may provide a different result.
Does a North Carolina seller have to make inspection repairs?
No. The standard contract is generally as-is. Buyers may request repairs, credits or other changes, but the seller is not automatically required to agree.
What time does the North Carolina due diligence period end?
Under the standard contract, it ends at 5:00 p.m. on the date entered in the contract unless the parties agree in writing to different terms.
When does a buyer get the keys in North Carolina?
Keys are generally released after the closing attorney confirms funding and the deed has been recorded with the county.
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