Should I ever skip due diligence when buying a home?

Should I ever skip due diligence when buying a home?

Due diligence is an important part of any real estate transaction since any failure, on the buyer’s part, to conduct inspections could end up costing the buyer dearly in the long run. While due diligence can be a very confusing and daunting process to complete on your own, it is essential to ensuring that you are getting what you are paying for. Having a general understanding of what due diligence means and why it’s necessary, will help make navigating the due diligence process much easier. Here is everything you need to know about due diligence and why you shouldn’t skip this important step when buying a home.

What is Due Diligence?

According to Nishad Khan, P.L., due diligence is conducting inspections on certain real property to confirm whether the property is acceptable to the buyer. Most times, due diligence is performed by the buyer after both buyer and seller have entered into a purchase and sale agreement. Due diligence may include, but is not limited to, conducting research on the property to confirm whether it meets the buyer’s needs, inspecting the structures on the property to confirm whether any structural defects exist, conducting a wood-destroying organisms (WDO) inspection, and surveying the property. While due diligence is not mandatory in all real estate transactions, it ensures that the buyer is given the opportunity to investigate, and ultimately, know what he or she is buying, which is why you need certified lawyers such as Orlando Real Estate Attorneys by your side.

Due Diligence Steps

Conduct a visual inspection of the area

Before you sign any contract or make an offer, it is recommended that you take a tour of the area where your prospective home is located and conduct some preliminary research of the area to ensure that it meets your needs. This will enable you to have an idea of such things as the school rating in the area, the home-to-school distance for any kids you may have, the traffic patterns at certain times of the day, the neighborhood, the crime rates, the amenities offered, and the surrounding property values.

House Inspection

Request to inspect the home. You want to be sure of what you are getting. A good home must have items, such as, electrical connectivity, plumbing, cooling, heating equipment, good insulation, and a good roof. A licensed home inspector should provide you with a full, detailed report on any major or minor issues or defects that may exist with the house.

According to Orlando Real Estate Lawyers, at minimum, a general house inspection should be conducted to ensure that the house is structurally sound. Additional items to consider inspecting are the pool, the roof, the plumbing, the septic tank, and for any wood destroying organisms.

Additionally, as buyer may be interested in ensuring that the structure on the property does not pose a serious health risk. In these circumstances, a buyer may decide to test for the presence of mold, defective drywall, lead-based paints, radon, or asbestos. Real Estate Attorneys in Orlando FL, can help provide guidance on due diligence in connection with real estate transactions.