{"id":52506,"date":"2016-04-21T07:18:27","date_gmt":"2016-04-21T07:18:27","guid":{"rendered":"https:\/\/www.movoto.com\/foundation\/?p=3522"},"modified":"2016-04-21T07:18:27","modified_gmt":"2016-04-21T07:18:27","slug":"what-is-due-diligence-when-buying-a-home","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/what-is-due-diligence-when-buying-a-home\/","title":{"rendered":"What is Due Diligence When Buying a Home?"},"content":{"rendered":"

Buying a home, whether it is your first or last, requires that you \u201ctake care\u201d and know everything that you can about the property. Home inspectors and other professionals with knowledge of a home\u2019s systems can help you determine if the home has hidden problems with the home\u00a0you are buying<\/a>, prior to closing. A seller\u2019s disclosure statement may be correct, as far as the seller knows, but due diligence will help you know what is true about the homes condition.<\/p>\n

What is Due Diligence?<\/b><\/p>\n

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Source:flickr.com<\/div>\n

By definition, it means \u201cthe duty of each party to confirm each other\u2019s expectations and understandings, and to independently verify the abilities of the other party to fulfill the conditions and requirements of the agreement.\u201d Business Dictionary<\/a><\/p>\n

In simpler terms, when used regarding real estate transactions, the due diligence process includes inspecting the property to see if it is everything it is being claimed to be and following the timelines that are included in the contract. You can inspect the home yourself; hire a home inspector or other professionals, such as roofing or heat and air contractors who can report to you on the overall condition of the home.<\/p>\n

What is the Due Diligence Period?<\/b><\/p>\n

The due diligence period of a real estate contract is the obligation of the buyer to thoroughly investigate the property under contract. It must be done within a certain time so that the buyer can determine if they are still satisfied with the property and the terms of the deal before finalizing the purchase of the property.<\/p>\n

The times are set forth in the contract and give the buyer time to procure a loan and have a home inspection, survey and any other inspections they need to have performed, prior to finalizing the deal. With a period of fifteen to eighteen days after the purchase and sale agreement are signed the buyer needs to move quickly to have these services performed. This will give you time to negotiate anything that has been found in the inspections.<\/p>\n

Are You Exercising Due Diligence on Your Home Purchase?<\/b><\/p>\n

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Source:mountpleasantgranary.net<\/div>\n

A seller and listing agent\u2019s goal is to sell the home. They are bound by law, in many states, to disclose \u201cknown defects\u201d with the property in the seller\u2019s disclosure but often not even the sellers know that their home has issues. If they claim no knowledge of a material defect with the property, even if they have knowledge, and you find it after you have closed the deal then you own it and that can be expensive. Heating and air systems can run into thousands of dollars for replacement, as can roofs, faulty foundations, and leaky plumbing. It is up to you to find these defects prior to your purchase.<\/p>\n

Do You Know This About Due Diligence?<\/b><\/p>\n