What is Due Diligence in Real Estate?

Dated: 09/07/2019

Views: 6

 BY 

If you’re buying a home for sale in Vero Beach, your real estate agent will eventually talk to you about due diligence. Maybe you’ve already seen the term, too.

But either way, here’s what due diligence means.

What is Due Diligence in Real Estate?

In real estate, the phrase due diligence really means homework. It includes doing things like:

  • Getting a home inspection, which can save you from tremendous hassle
  • Having a title search done
  • Reading up on HOA rules
  • Making sure you’re getting what you’re paying for

Your real estate agent will help you stay on track through the entire buying process, but here’s what you need to know.

#1. Getting a home inspection, which can save you from tremendous hassle

One of the first things you’ll want to do when a seller accepts your offer is to hire a home inspector. The inspector will go through the home and check out its major systems, its foundation and its construction. He or she will look for things that could cost you money to fix if you buy.

#2. Having a title search done

You’ll also hire a title agency to find out whether there’s going to be anyone who can challenge your home ownership. They’ll review public records related to the property to determine whether the title is clear and you can purchase the property.

#3. Reading up on HOA rules

If your new neighborhood has a homeowners association, or if you’re buying in a condo complex, you’ll have to review the rules and make sure they’re right for your lifestyle.

#4. Making sure you’re getting what you’re paying for

The bottom line is that during the due diligence period, it’s up to you and your agent to make sure you’re getting what you’re about to pay for. Buying a home is one of the biggest – if not the biggest – financial transaction you’ll ever make, so it makes sense to dot all your Is and cross all your Ts.

Blog author image

Chip Boyer

Chip is the IT Manager for Alex MacWilliam Real Estate. He handles the technology needs of the company as well as helping agents in their day to day problem solving.....

Latest Blog Posts

3 (Affordable) Upgrades That Can Help You Sell Your Home Faster

If you're like most people who are selling a home in Vero Beach, you want to sell quickly and at the best possible price.And you'd like to do so without a major kitchen or bathroom overhaul, right

Read More

3 Little Things You Have to Do Before You List your Home

If you're thinking about selling your home in Vero Beach, you'll want to make sure it's ready for buyers to fall in love with before you list it - but you can only do that if you've tackled these

Read More

3 Fast Curb Appeal Fixes

When you're selling your home in Vero Beach, your real estate agent will talk to you about curb appeal and how important it is for your house to make a great first impression.If your house doesn't

Read More

What Happens if You Overprice Your Home?

We all know someone who's been trying to sell a house for... well, forever. The months have dragged on and there aren't any serious offers, but there's nothing wrong with the house - it's just that

Read More