A Buyer's Checklist: Key Due Diligence Steps in a Real Estate Transaction

The time for due diligence starts ticking once you have signed a contract to buy property. The Due Diligence period is your opportunity to review and inspect the property and confirm it’s state, any issues, and if it's what you really want. We'll go over a checklist to help you with this.

During due diligence, you want to find out anything about the house that the seller didn't mention or that you should know before proceeding further with the Contract. This includes things that might make you not want to buy the house anymore. Below are the inspections you should complete during this timeframe:

• Home Inspection: Schedule a thorough inspection to uncover any hidden issues with the house.

• Property Survey: Arrange for a survey to determine property boundaries and identify any potential boundary disputes or encroachments.

• Review Restrictive Covenants: Obtain and review the neighborhood's rules and restrictions to ensure they align with your plans for the property.

• Additional Inspections: Consider other inspections such as termite, well, or stucco inspections to uncover any additional problems.

• Septic Permit: Obtain a copy of the septic permit to confirm the property's permitted number of bedrooms.

• Lender's Conditions: Ensure you meet all conditions set by your lender to secure loan approval and proceed with closing.

• Homeowner's Insurance: Secure homeowner's insurance and provide documentation to the closing attorney and lender well before closing.

• Repairs Negotiated with Seller: Ensure any repairs negotiated with the seller are completed satisfactorily before closing.

• Stay Informed: Keep track of the progress of inspections and repairs to avoid last-minute surprises.

• Agent's Checklist: Follow your agent's checklist and guidance to ensure you've covered all necessary steps during due diligence.

Buying a property is a significant commitment involving a substantial amount of money and long-term decision. Take advantage of the opportunity to inspect the property to ensure it meets your requirements thoroughly! Skimping on due diligence may seem like saving money, but it can lead to much greater expenses later on. Investing in thorough inspections upfront can help you avoid major repairs or title issues arising after closing. It's better to spend a little more now than to deal with costly problems down the road.