🏡 BUYER EDUCATION
Understanding Due Diligence and Earnest Money
What every Grand Strand buyer should know before making an offer.
Few parts of buying a home are as misunderstood as due diligence and earnest money. We see the confusion regularly, especially from buyers relocating from states where contracts work very differently.
HOW IT WORKS
📝 The Basics in South Carolina
Under the standard South Carolina Realtors contract, the due diligence period gives the buyer the right to terminate for any reason or no reason at all. If you terminate for due diligence reasons, you pay the seller the termination fee written into your contract. It’s a negotiated amount and it isn’t refundable.
Earnest money is your good-faith deposit, held by the closing attorney and credited toward your purchase at closing. It’s separate from the termination fee. Here on the Grand Strand, we often see $1,000–$5,000 on residential purchases, and more on luxury and waterfront homes.
The termination fee is only owed if you terminate during the due diligence period for due diligence reasons. Terminating under a financing, appraisal, or other contingency doesn’t trigger it.
TERMINATION FEE
Owed only if you walk
Paid to the seller if you terminate for due diligence reasons
EARNEST MONEY
Credited at closing
Held by the closing attorney, separate from the fee
YOUR PROTECTED WINDOW
🔍 What to Do During Due Diligence
Inspections our team recommends on the Grand Strand:
The due diligence period is your protected window. Use all of it, don’t waive inspections, and make sure you understand what you’re walking into.
⏰ The deadline is 6 PM on the date in your contract. By then you must accept the property as-is, negotiate repairs, agree to other remedies, or terminate. If you do nothing, the contract becomes as-is.
A termite or flood-zone surprise found early is far easier to handle than one found after closing. For marsh-front and waterfront homes in Murrells Inlet, Pawleys Island, and Little River, the elevation certificate is especially worth ordering early.
LET’S TALK
Questions Before You Make an Offer?
Our team knows how to structure the due diligence period to protect buyers and keep deals moving. If you or someone you know has questions about how this works before making an offer, we’re here.
And when you need a break from contracts — here’s what’s happening on the Grand Strand this weekend.
GET OUT & ENJOY IT
🌊 This Weekend on the Grand Strand
November 6 – 8, 2026
🐉 Sat–Sun, Nov 7–8 @ 11 AM–6 PM — 13th Anniversary
Mythical & Medieval Fest
RH Acres, Socastee — A fairy forest, medieval combat, an artisan village, a fire show, live music, and food for the whole family. Costumes are encouraged, and proceeds support Caleb’s Dragonfly Dreams, a Myrtle Beach nonprofit serving children.
🦪 Saturday, Nov 7 — 22nd Annual
Murrells Inlet Oyster Roast
Wicked Tuna, Murrells Inlet — All-you-can-eat oysters for $40, with other food available. Check the start time before you go.
🐶 Sunday, Nov 8 @ 11 AM–4 PM
Woofie’s Grand Opening at Pooch-A-Mania
Grand Park, Market Common — Pet adoption and a fun zone for the whole family.
🔬 Sunday, Nov 8 @ 11 AM–2 PM
National STEM Day & Family Fun Day
WonderWorks, Myrtle Beach — Interactive hands-on activities for the kids.
💃 Fri–Sun, Nov 6–8
Showstopper Dance Convention
Myrtle Beach Convention Center — Dancers from across the country arrive for workshops, training, and performances. Expect a busy Convention Center area.
Budgeting for your purchase? See our Myrtle Beach Homebuyer’s Closing Cost Guide.
Contract terms vary. Consult your contract and a South Carolina real estate attorney for guidance specific to your situation.