What is a Due Diligence Fee?

A due diligence fee is a payment a buyer gives to a seller when signing a home purchase contract. It shows the seller you are serious and gives you time to inspect the property, review documents, and confirm it meets your expectations before fully committing.

Unlike an earnest money deposit, the due diligence fee is typically paid directly to the seller and may be non-refundable if you back out without a valid reason.

Why Buyers Benefit from a Due Diligence Fee:

• Stand Out to Sellers: Shows commitment, especially in competitive markets.

• Time to Inspect & Research: Check for repairs, liens, or other issues.

• Negotiation Power: Discover problems? You can request repairs, credits, or exit the contract.

• Peace of Mind: Reduces risk and ensures informed decision-making.

How Much Should You Pay?

Amounts vary by location and property price, from hundreds to several thousand dollars. A trusted real estate agent can help determine an amount that is serious but reasonable.

Bottom Line: A due diligence fee is a small investment that protects you as a buyer, strengthens your offer, and gives you time to make a confident decision.