All Forum Posts by: Tim Tassio

Thanks to both of you. You can’t do any inspections prior to paying? (I’m thinking of people in Texas finding $50k foundation problems). As a seller I love the idea of getting a non-refundable deposit, as a buyer it scares me.

Can you imagine a first time buyer who finally saves up 5-10% and put it down on a property. It doesn’t appraise and they lose it all. Now they have to rent for a couple more years and save up? A person making $15/hr could lose a month or two of pay? Just ouch.

In Texas, DD fees did not get egregious. In North Carolina they have, but they have settled down.

I do $1500-$3500 in DD fees for my houses there. Still got these foolish agents suggesting 5-10k. I've done $3500 on a $700k property and just wouldn't budge. It's a horrible process for buyers, but it is what it is. In Texas, I've paid about .001%-- so $400 for a $400k property. In Raleigh, no one listens unless it's $1500. In raleigh, you still can have all sorts of contingencies and get done. It's definitely softened.

It's what makes quick offers really hard in NC. Raleigh things just sit, rarely off overnight. Everyone walks the property.

An agent who suggest 5-10k in due diligence in Raleigh is only foolish if they are suggesting that without any basis or suggesting that when there were other alternatives to strengthening the offer. For a well-priced property in North Hills, downtown, Five Points, etc that will likely be on the market for under 48 hours... 5-10k is likely too low unless you are a cash buyer or go way over asking. I have had multiple clients, including myself, who have submitted over-asking offers with competitive terms and a lower offer won just because the other offer had a higher due diligence.

For major rehabs, tear downs, properties in less-desirable areas, the properties no one wants, or properties that have been on the market longer than a couple of weeks or so, 1-5k is definitely appropriate. It is a case-by-case basis. It ultimately comes down to how much a buyer wants the house and how long they are willing to wait to find something. I agree, it is a horrible process for buyers.

For a well priced property? Those are few and far in between, even in a declining market like raleigh.

Most agents here start you at at about $20k in those neighborhoods, do you see what happens when all agents agree to start you there?

You're contributing to the problem by getting and telling all these buyers that if you really want it start bidding up. If all these agents said let's start at $5k, what happens? A lot less regret and a lot less issues. The only beneficiary in getting people to bid DD up is to make the buyer feel obligated to buy post-inspection, and therefore, more than likely get the close done. That's exactly why the seller takes the higher DD not necessarily highest offer; it's literally incentivizing the agents to drive it up.

Raleigh(and NC) markets are the most colluded of any I have been in. I went from having two agents to ditching them and work with the listing agent directly in the houses I've bought.

Because as soon as the agents realized they are on both sides of the offer, my low(er) DD offer suddenly became attractive---how convenient. I buy in good areas, too. I have properties in Five Points, Midtown, and the SW area in raleigh just near dix park. And in Durham I have them near southpoint and south of hope valley farms.

This is the value of BP, thank you and to all in this thread. I was completely ignorant to this process. I especially agree that this is concerning in Texas relative to the very well known foundation issues.

Texas DD fees are nowhere near egregious. I literally pay .001%, it's nothing like North Carolina where agents are running the score up constantly with you. I mean I remember being told once to do at least $16,000 then within 8 hours on 6 different texts than I should do $30,000 if I want to be serious. I literally told the lady, you're running people up and circling back. Quit this ****. This was back in May, when the market was hotter. I submitted $3,500 and she fought me.

I said just submit it. I am cool with losing it, my offer was accepted cause I was all cash & said I don't need to inspect but still want a diligence date. I ended up busting the house, and the agents were livid with me. I didn't respond but had a bunch of texts & missed calls. Oh they could've taken a $32,000 DD instead & other nonsense. I just responded once-- I had to remind her the fiduciary responsibility is of mine. Not yours homie, keep that stuff in check.

0 Votes

Raleigh, North Carolina

Hello! I’m hoping anyone with current experience can give me an idea on how the current market is dictating the due diligence fee around the RTP area including suburbs, for single family homes? What percentage of the sales price one would expect a seller to typically accept? Or if not a percentage, is their a standard dollar range a buyer would expect to have to include in their offer…how much? Thanks!!

1 Vote

Raleigh, North Carolina

Hey Hana - I had a contact I’ll try and dig up but I didn’t end up needing them.
I’ve been looking at this area on and off. Would love to pick your brain if you’re open to it and had a few minutes - tim

1 Vote

All Forum Posts by: Tim Tassio

Tim Tassio has started 1 posts and replied 3 times.

Post: Due diligence fees - current market 2023/24

Post: Due diligence fees - current market 2023/24

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