Due Diligence in the process of buying a home
Performing Due Diligence in the process of buying a home is the sixth step as we funnel through the 8-step program discussed over the past few weeks. There is a lot to learn so here are the Keller Williams’ highlights:
Your agent will provide you with improvements and challenges within your home. This way you’ll know what you are getting into before you complete the purchase.
Knowing what work has and has not been done to your home is important information to have in the buying process. While updates can increase your home value, damages can take money out of your pocket. Your main concern is the possibility of structural damage, which can come from water, shifting ground or poor construction.
Very often a problem appears to be big but can be fixed with very little effort and not a huge budget.
It may not sound riveting so far, but it can be one of the more stressful steps in home buying. As noted in the last step we covered, Make an Offer, your real estate agent will give you an idea of comparable home values in the neighborhood to help you decide if the price point is on par. As such many financial investment firms advise you to also do your own due diligence in shopping the marketplace as well.
Here are 8 tips for smart buyers to consider:
- Shop the marketplace
- Do Your Homework
- Get Multiple Bids for Your Mortgage Financing
- If You’re Financing, Expect an Appraisal
- Have the Property Inspected
- Search the Title History and Get Owner’s Title Insurance
- Check Out the Homeowners Association Covenants & Restrictions
- Consider an Experienced Real Estate Attorney, if You’re a Beginner
The Dias Team
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