It’s no secret that the 2021 / 2022 housing market in the Charleston Tri-County Area has been extremely competitive. Multiple sources show on average an approximate 16% increase in the median price of a home sold in the Tri-County Area from the prior year. A combination of low interest rates and low inventory is pushing prices up continuously. However, the Trident Association of REALTORS® predicts that the recent increase in inventory may give buyers a little more of an edge in upcoming months.
Due diligence is certainly one thing that has been affected as buyers compete mercilessly for homes. In this post, we’ll cover what exactly due diligence is, why it’s important, and how Home-Probe can help you make the most of your due diligence period.
What is the due diligence period in South Carolina?
The due diligence period is always optional but can prove to be extremely worthwhile. During this period, it allows the buyer the opportunity to conduct the appropriate inspections and assessments needed to evaluate the condition of the home and help provide peace of mind in their buying decision. In today’s competitive market, it may seem like a good idea to take whatever means necessary to get an offer accepted, however it’s never recommended. With a due diligence period, a buyer can back out of the purchase and only lose their due diligence money and not earnest money.
How long is the due diligence period in South Carolina?
The South Carolina due diligence period is negotiated between the buyer and seller beginning on an effective date and ending on a hard date and time of 6:00PM. Traditionally they can last between 10 to 14 business days, but over the last few years we’ve been seeing them as low as 1 to 3 days.
What has changed with the recent due diligence in South Carolina as of June 13th, 2022?
This is a question better reviewed and answered by your broker but basically the only change to the due diligence section is that it has gone to a straight due diligence contract, eliminating the repair procedure and “as is”. All inspections and assessments will need to be completed during this time, but not the actual repairs.
During this time, a home inspection is completed, and the report is reviewed by the buyer for any requested repairs. At this point the buyer and seller negotiate on what is being requested to repair or replace. If the buyer and seller are not able to come to an agreement, the buyer is then able to cancel the contract with the appropriate paperwork and the buyer will only lose their due diligence money.