Want to know more about Buyer Due Diligence and what it means to buyers. Read this great article and learn how to protect your interests. You are making a big investment so read on!
What does due diligence mean to buyers?
First, congratulations on your decision to buy a home. So what does the process involve and how can you protect your interests? There are many sources of information on the web to start your search but one of the best ideas is to speak with a real estate agent in the area where you want to buy.
There are many steps involved in performing your due diligence and each is important. Why? If for no other reason, your future retirement could be at stake. If you plan on living in the home, your head will be the one on the pillow, so be sure to be comfortable with your selection.
You’re probably waiting for what steps are involved. Beyond getting your offer accepted, there are inspections to be done and many documents to be reviewed. For example,
- Preliminary Title Report ~ These are helpful in understanding easements, taxes and other critical areas to keep your title clean;
- Homeowner Association (HOA) documents ~ Are there conditions, covenants and restrictions that apply to the home you’ve selected? The HOA documents will disclose them;
- Seller Disclosures ~ The seller must disclose every material issue they’re aware of concerning the property. If there have been upgrades, repairs, floods or other experiences of note. This is also a point where noisy neighbors, mushroom farms or other nuisances may also be discovered;
- Inspections ~ There are a wide variety of professionals available to perform inspections on everything from your septic system to your roof. You are strongly encouraged to understand the condition of the property before removing contingencies;
- Area investigation ~ This is one of the top areas of concern for buyers. Is the area safe? Please, please drive by and through the area frequently and at different times. Note how the area appeals to you. Check with area law enforcement and newspaper logs of activity. Safety is somewhat a relative term and what you consider safe may be different than other opinions;
- Schools ~ This is an important area to consider whether you have children or not. Among directly contacting the school and other parents, you can also look online at resources such as GreatSchools and SchoolDigger;
As a Buyer, you have many resources at your disposal and your well advised to use them. If you’re in doubt, ask a trusted source.
Your due diligence as a buyer can mean the difference between building your future or spending your future making up for mistakes.
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As always, let’s foresee the possibilities . . . and get results!
In case you’re wondering what I do outside real estate, among other things, I’m a volunteer at the Wildlife Education and Rehabilitation Center (www.werc-ca.org). There’s something special about helping others whether people or wildlife that just makes me sleep better at night.
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