Greater Seminole County Real Estate Report 7-7-21: The due diligence period is crucial to ensuring your investment is a good one! Here’s how to maximize your time!
Having an offer accepted as a buyer is just the beginning of the home buying process. Immediately following the date you enter into a contract comes the period known as due diligence. It is arguably the most critical step during a real estate transaction. This is your guide to everything you need to know about due diligence and how to make the post of this time.
What is the Purpose?
The purpose of due diligence when buying a home is to make sure you get what you pay for. Conduct as many types of inspections as you wish during this time to make sure the home and property are up to your standards. If an examination reveals an issue, you can renegotiate the contract terms or even walk away without a penalty, meaning you will receive a full refund of your earnest money.
If you decide to break the contract afterward, you will lose all of your earnest money.
Due Diligence Checklist
The following are the most common things you should check for during this part of the buying process. Please keep in mind that this is not an exhaustive list, and you are free to get as detailed as you like.
- General home inspection – This is the most common type of inspection conducted by home buyers. It includes an overview of the condition of the foundation, electrical system, HVAC, roof, and septic of the home. The results may prompt additional inspections.
- Roof inspection – A professional roofer will be able to tell you in greater detail if there are any maintenance or repair issues.
- Electrician – An electrician can alert you to any faulty wiring or unsafe conditions that need to be addressed.
- Pest control – An experienced pest control technician can evaluate your home for signs of termite damage and insect or rodent infestation.
- HVAC inspection – A professional HVAC technician will inspect the system and alert you to any repairs or maintenance issues that need to be tended to.
- Septic inspection – It is important to ensure that the septic tank has been pumped recently and that the system is in good shape (i.e., the drain field has not collapsed).
- Flood zone verification – Additional insurance coverage may be required for homes identified as being in a flood zone. It is essential to make sure yours is not.
- Review HOA covenants and restrictions to ensure your plans for the property can be legally carried out (i.e., renting).
- Check for existing liens.
- Ask for the average cost of utilities.
Prepare Ahead of Time
The due diligence period is not long when you are trying to fit in as many inspections as possible to ensure the quality of your investment. Prepare ahead of time before you even make an offer on a home. Have a general idea of the types of inspections you will want to conduct (although they may vary slightly depending on the property). It is also advisable to have the names and numbers of companies you wish to use. A little bit of planning will save you a great deal of time once you find yourself in the due diligence period.
Partner with the Leading Realtor in Lake Mary
Making the most of the due diligence period is just one of many valuable home buying tips. The home buying process can seem overwhelming, but not when you have the right Realtor by your side. Here at Gitta Sells, we have a vast amount of experience helping buyers close on their dream homes. Our team can help you through the due diligence period by offering valuable advice, suggesting reputable professionals for inspections, and so much more! I am always happy to answer any questions you may have. Feel free to reach out at email@example.com or 407-330-2181. Until next time, happy home buying!