How do due diligence fees work to protect homebuyers?

Due diligence fees are paid upfront to the seller to buy time for inspections and investigations. These fees vary by market but often cover inspections and loan application periods. Unlike earnest money, due diligence fees are typically non-refundable if you walk away after the deadline. They signal a firm commitment to the seller while giving you space to uncover risks. Paying a reasonable due diligence fee balances protecting your budget and strengthening your offer.