The Agency - Charlotte - Flipbook - Page 30
Underst a nd i ng You r
Fi na ncia l Pa ra meters
Up-front and at-closing funds
• Due Diligence Fee (NC): Paid to the seller at contract; compensates them for taking the home off
market while you investigate. Typically non-refundable except for seller breach, but credited at closing.
• Earnest Money Deposit: Held in escrow; credited at closing; generally refundable if you terminate
within your contract deadlines per the offer terms.
• Closing Costs: Lender fees, appraisal, title search/insurance, attorney, recording/transfer taxes, and
prepaid items (taxes/insurance/interest). Exact totals vary by loan, price, and county.
Carrying costs to plan for
• Property taxes: Set by county/municipality; escrowed with your loan in many cases.
• Insurance: Homeowners policy (and flood if required by your lender). Consider additional liability/
umbrella coverage.
• HOA/Condo Fees (if applicable): Review budgets, reserves, special assessments, and rules.
• Utilities & Maintenance: Power, water/sewer, internet, landscaping, and reserves for major systems
(roof/HVAC/water heater).
Inspections & risk management
• Standard Inspections: Whole-home, termite/wood-destroying insect, radon (as applicable),
and sewer/septic where relevant.
• Specialty Evaluations: Structural, roof, HVAC, pool, dock (lake properties), or survey per
property type.
• Negotiation Leverage: Inspection outcomes can inform repairs, concessions, or price adjustments
within the contract window.
Appraisal & “gap” planning
• If appraisal < contract price: Options include price adjustment, seller credit, buyer cash to cover the
gap, or contract termination pursuant to your terms.
• If appraisal > price: You proceed with greater equity day one.
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T H E A G E N CY C H A R LO T T E
