What is Due Diligence?
When purchasing Residential Real Estate or land, the agreement between the buyer and seller will outline a time frame in which the buyer can conduct their due diligence. This time period is the buyer’s opportunity to bring in professionals to conduct inspections of the structure and systems. In cases where the property may need remodeling after close of escrow, the buyer will bring in contractor’s and other professionals to get bids on the work the buyer wants to do after they take possession of the property.
During the due diligence period the buyer is taking an in-depth look into everything about the property and deciding whether to ask the seller for additional concessions like repairs or a credit towards closing costs in lieu of repairs, or to just move forward as is. In some cases, the buyer may decide not to move forward, in which case, the buyer would be eligible to receive their earnest money back.
For seller’s, proper maintenance of all systems and structures during the life of the property is a good investment in maximizing a potential buyer’s satisfaction with the home.
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