Home buyers, Perform Your Due diligence

due diligence

Home Buyers, Perform Your Due diligence

 

real estate due diligenceThe due-diligence portion of your purchase is similar to courting a mate. The more bad stuff you find out the less likely you will be to pursue a relationship with that person. Although you won’t be married to a house in the literal sense, you will be married to all its issues, good or bad, once you buy it. How long is your “engagement”, or how much time do you have to figure out what skeletons are hidden and where they are stashed? Well this is the time to look, during your due diligence period.

Due diligence is basically an opportunity to find out what you can about the house you are trying to buy to ensure you are making the right choice. Don’t buy a house based on photos only, or you might discover the photos are 10 years old. Go and actually look at the house. Don’t buy a house directly across from a school if you don’t like traffic, (twice a day). If you discover the home in on septic, you might wish to do a septic inspection. If the house is on well water, do a well inspection. Looks like water stains on the ceiling, or fresh paint on the ceiling, order a roof certification and so on…

Is you agent pushing you to perform all your due diligence within a short time frame? Own other words, is your agent giving you enough time to perform your due diligence and inspections etc…? Are they doing their job of helping you dig deep to locate any undesirables associated with this property so you don’t regret it later?
Is your agent suggesting that you have ALL necessary inspections? Such as mold, radon, asbestos, HVAC, termite, chimney, sewer, soils, structural, air quality, and the list of all the other inspections you can get goes on and on… You may not need all of these, but if your agent is not at least telling you about them then you will need to find out about them yourself, and hopefully sooner than later.

Did they suggest that you go to the city Building and Safety department to research the property for any associated building permits for any work done? This will be especially important if there is a garage conversion, new room addition or a patio cover for example.

Did the agent suggest you walk the neighborhood at night, in the morning, talk to neighbors (this one is huge), take the morning commute if you work a distance from where you want to live?
If your agent is not explaining how to use your Due Diligence time wisely, then you just have to do it on your own. Every house has issues, but it’s all about working through the issues. The home doesn’t have to be perfect, just have the ability to be perfect if you so choose. Any additional inspections aside from a general inspection will help you gain even more information. Having this information gives you a new perspective on the property and allow you to make sound investment choices as well as the ability to cancel if the price is not worth the heartache.

Home inspection repair request listAlso be aware that doing some of these inspections can be difficult if not impossible if you are only given 7 days in which to perform them all. Keep in mind its in the best interest of the seller and agents to allow short inspection time periods. Make sure when you write your offer you give yourself enough time to get all and any inspection done, review the reports and make any additional requests. Many inspectors will recommend additional inspections by other specialists if they discover unusual or significant issues. Make sure you have the time.

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