How Due Diligence Helps Buyers and Sellers

When you do a real estate sales contract, you might notice the words “due diligence” written in it. What does this term really mean? Due diligence is a time period that gives you the opportunity as a buyer or seller to do your homework on the property. Examples of the kind of homework done during this due diligence include:

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Due diligence allows you the
 time period to do your homework.

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• Home inspection. You want to have a home checked out, and due diligence allows for a home inspection so you can fix or negotiate any repairs on it.
• Title search. You want to be sure your title company has checked out your property and made sure there are no liens or encumbrances and that you will own the property free and clear.
• Checking out your neighborhood. Even in some of the older neighborhoods there can be specific restrictions that you want to be aware of so you can be sure to comply with them.
• Square footage. You want to check out your square footage and know that what was done and what was put out there in the records is right. Most of our agents use tax records, but in our local area, tax records are almost always wrong. They use the area of the garages and porches, but we don’t count those things as square footage that is heated and cooled. Those are the kinds of discrepancies due diligence allows you to examine.
• School zones. We state the school zones according to the information we’re given, but sometimes those things can change. In areas and times where schools are being built and taken away, school zones can change frequently.
• Lots. If you’re buying a lot or land, and you’re thinking of building, you want to check out the building codes and restrictions and be sure that what you plan to build on the property is in line with what’s allowed.
• Septic and sewer issues. You want to avoid buying a home with these issues, as they are awfully costly to fix yourself.

If you’d like more information on due diligence and want to know more about working through a real estate sales contract, call our team phone number or send me an email directly. I look forward to hearing from you!