Buying a home in Greenwood is exciting, but the due diligence period can feel like a maze. You want to be confident the home is sound, the title is clean, and your money is protected. In this guide, you’ll learn how due diligence works in South Carolina, what to do in Greenwood County, and how to avoid common mistakes that cost time and money. Let’s dive in.
What due diligence means in South Carolina
Due diligence is your negotiated window to fully evaluate the property and decide whether to move forward to closing. In this period, you complete inspections, review title and HOA documents, confirm your loan and appraisal, and verify zoning, utilities, and flood risk.
Two money items commonly appear in South Carolina contracts:
- Due diligence fee (DDF): A negotiated fee you pay to the seller when the contract is signed. It compensates the seller for taking the home off the market and is usually nonrefundable if you terminate, unless the seller breaches the contract. Always check the exact contract language.
- Earnest money deposit (EMD): Money placed in escrow according to the contract. If you properly terminate within the due diligence period as the contract allows, your earnest money is usually returned. After the period ends, the EMD may be applied to the purchase price or become disputed, depending on the contract and events.
The exact outcomes depend on the executed contract. Your agent and, when needed, a real estate attorney can help you interpret the terms.
Typical timeline in Greenwood
The due diligence period is negotiated. In many cases it ranges from several days up to 30 or more days. Shorter windows are more attractive to sellers. Longer windows help if you need time for inspections, financing, or contractor bids.
Deposit deadlines matter. Your contract will set the timeline to deliver earnest money to the escrow holder. Missing it can be a default. Schedule inspections as soon as your offer is accepted so you have time for follow-ups.
Rural Greenwood County properties that include septic, well, or acreage often need extra time for specialized inspections and surveys. Plan for that when you write the offer.
Your due diligence tasks
Inspections to schedule
- General home inspection and pest/termite inspection
- Roof, HVAC, plumbing, and electrical evaluations as needed
- Septic system inspection and pumpout, plus perc test if required
- Well water testing for potability, coliform, and nitrates
- Mold, radon, or asbestos checks if age or conditions suggest risk
- Structural or foundation review for older or historic homes
Ask for written estimates for any repairs you plan to request. Estimates help you compare repair options or negotiate credits.
Appraisal and financing
Your lender will order an appraisal. If the appraised value is lower than the contract price, you can try to renegotiate, cover the difference in cash, or terminate if your financing contingency allows. Make sure the due diligence period gives enough time for the appraisal and underwriting.
Title, survey, and records
Review the title commitment for liens, easements, judgments, unpaid taxes, or restrictions that could affect your plans. For acreage or boundary questions, order a current survey and confirm easements, setbacks, and possible encroachments. In Greenwood County, you can review recorded documents with the Register of Deeds and check parcel data with the Auditor and GIS.
HOA, zoning, and permits
If the property is in a subdivision or city neighborhood, read the HOA covenants, rules, and financials. Confirm any upcoming assessments or use restrictions. Check Greenwood city or county planning and zoning for permitted uses, setbacks, and permits, including rules that might affect accessory buildings or short-term rentals if relevant.
Flood and environmental factors
Check FEMA flood maps and local zoning information to understand flood risk. If the home is in a Special Flood Hazard Area, your lender may require flood insurance. For certain property types, such as former agricultural or industrial sites, consider a Phase I environmental assessment.
Lead paint and disclosures
For homes built before 1978, federal law requires lead-based paint disclosures. If young children will live in the home, consider following recommended testing and safety steps during due diligence.
How to structure a strong offer in Greenwood
A clear offer helps set expectations and protect your interests. Common pieces include:
- Purchase price
- Due diligence fee and due diligence period length
- Earnest money amount and deposit deadline, plus the escrow holder
- Target closing date
- Inspection and repair process with deadlines for requests
- Financing and appraisal contingencies and how the EMD is handled
- Title and survey responsibilities and who pays for them
- Any seller concessions or included personal property
Local considerations to include:
- For properties with septic and well, add septic inspection and well water testing requirements
- For historic or downtown homes, include time to review historic district rules
- For rural acreage, include a survey and boundary verification period
- If you expect larger repairs, allow enough time to get contractor estimates
Protect your earnest money
- Deposit EMD on time and get written proof of receipt from the escrow holder.
- Follow the contract’s notice rules exactly if you need to terminate. Deliver written notice to the right party before the deadline.
- Keep copies of all emails, inspection reports, estimates, and notices.
- Review the dispute resolution clause so you know the steps if there is a disagreement.
- Work closely with your agent and consider consulting a real estate attorney for important legal steps.
Common dispute triggers include missed deadlines, unclear repair agreements, and failing to terminate in writing within the due diligence period.
Common Greenwood pitfalls and how to avoid them
- Waiving key contingencies to be more competitive can put your EMD at risk and expose you to costly repairs.
- Skipping or delaying septic and well testing can lead to expensive surprises.
- Postponing inspections can back you into a corner when specialists are booked out.
- Ignoring title exceptions can affect how you use the property later.
- Relying on verbal notices instead of on-time written termination can cost you your EMD.
- Assuming the DDF is refundable is a mistake. Confirm the contract terms.
A quick Greenwood due diligence checklist
- Pay and confirm deposit of your earnest money per the contract
- Deliver your due diligence fee to the seller if required
- Order the general inspection and any specialty inspections right away
- Have your lender order the appraisal and begin underwriting
- Request HOA documents and review covenants and financials
- Obtain the title commitment, review exceptions, and order a survey if needed
- Schedule septic inspection and well water testing for rural properties
- Check flood maps and any insurance requirements
- Gather contractor estimates for repairs you plan to request
- If you decide to terminate, send written notice per the contract before the deadline and keep proof of delivery
Local resources to check
- Greenwood County Register of Deeds for recorded documents and easements
- Greenwood County Auditor and GIS for parcel and tax data
- Greenwood County Environmental Health for septic permits and rules
- City of Greenwood Planning and Zoning for properties inside city limits
- Greenwood County Planning and Zoning for unincorporated areas
- Experienced local home inspectors, lenders, and closing attorneys familiar with Greenwood
Ready to move forward?
You do not have to navigate due diligence alone. With 22 plus years of Greenwood experience, local vendor relationships, and a hands-on service model, our team can help you craft a smart offer, schedule the right inspections, and protect your earnest money every step of the way. If you are planning a purchase, let’s build a plan that fits your timeline and the property you love.
Connect with Joan Timmerman to Schedule a Local Market Consultation.
FAQs
What is due diligence in South Carolina real estate?
- It is a negotiated period after your offer is accepted when you inspect the property, confirm financing and appraisal, review title and HOA documents, and decide whether to proceed to closing.
What is the difference between the due diligence fee and earnest money in SC?
- The due diligence fee is typically paid to the seller and often nonrefundable, while earnest money goes to escrow and is usually refundable if you properly terminate within the due diligence window according to the contract.
How long is a typical due diligence period in Greenwood, SC?
- It is negotiated and often ranges from several days up to 30 or more days; rural homes with septic, well, or acreage may need extra time for specialty inspections and surveys.
Which inspections matter most for Greenwood County homes?
- Start with a general home and pest inspection, then add septic, well water testing, roof, HVAC, plumbing, electrical, and structural evaluations as the property requires.
How do I protect my earnest money if I need to terminate in Greenwood, SC?
- Deliver written termination to the correct party before the deadline, follow the contract’s notice rules exactly, and keep proof of delivery and all related documents.
What happens if the appraisal is low in South Carolina?
- You can try to renegotiate the price, bring extra cash to cover the gap, or terminate if your contract’s financing or appraisal contingency allows it.
