Explaining Due Diligence in the Homebuying Process

As a homebuyer, you deserve nothing but the best when purchasing your new abode. That is why it is essential for you to understand the due diligence period during the homebuying process. From researching and inspecting to negotiating repairs and closing on your dream house, this step in buying real estate can feel overwhelming without proper guidance. But don't worry—we’re here to provide info about due diligence every homeowner should know. We’ll walk you through what due diligence truly encompasses, so that you can rest assured knowing exactly what lies ahead of you on your journey towards owning the perfect house for yourself and your family.

What is Due Diligence in the Homebuying Process?

Due diligence in real estate is a period of time during the homebuying process, typically after an offer is accepted and before closing, during which the buyer has an opportunity to flesh out their purchase before the home officially becomes theirs. What happens during due diligence varies from state to state.

A home inspection is typically included during due diligence. Let's face it, there's no such thing as a perfect home, even if it's fresh off the market. That's why it's crucial to have a home inspection conducted before you make one of the biggest purchases of your life. A home inspection comes after you've walked through your dream home, fallen in love with it, and had your offer accepted. Keep your head cool and make sure you know the ins and outs before sealing the deal on your forever home.

So, you've made an offer on a dream home, but that doesn't mean the price is written in stone just yet. Enter the home inspection and due diligence period. This is where you and your team (real estate agent and maybe even an attorney) get to dig deep and make sure everything is as it should be. It's like a detective mission – discovering any issues with the property or contract and making sure you're absolutely satisfied before sealing the deal.

How Long Does Due Diligence Typically Last?

If you’re planning to buy a property but feel overwhelmed by the due diligence process, don't worry; different states might have different names for it, but the steps are usually similar. Take your time, as this period can last anywhere from 7 to 30 days, depending on the complexity of the purchase. This is your chance to get your finances in order and ensure that you're ready to move forward with confidence. Keep in mind that once you complete due diligence, you're committed to the purchase, so it's crucial to be serious about your intentions. Put down some earnest money to prove you're committed and ready to make this your dream home. Don't let the process scare you; let it empower you to make informed decisions and secure your future.

What Steps Should Be Taken During Due Diligence?

As you embark on the journey toward your dream home, be prepared for a thorough investigation process. During your due diligence period, you may encounter a multitude of inspections, including the always-important general home inspection. We're talking nitty-gritty details here – your inspector will check everything from your plumbing to your appliances, in order to ensure everything is in tip-top shape. But it's not just about function – they also have an eagle eye for safety concerns and any foundational or structural issues that may need to be addressed. Trust us, it's worth the peace of mind to have a professional give your home the seal of approval. 

Before you start making your dream house vision board, let's talk about inspections. While a general inspection is a great start, there are a few other inspections that may be necessary to ensure your dream home is safe and sound. We're talking asbestos tests to check for suspect material or a lead-based paint inspection. And let's not forget the pesky termites and wood rot that could potentially put a damper on your future renovation plans, so a wood-destroying organisms inspection is a must. Plus, if your home was built between 2001 and 2009, a defective drywall inspection may also be necessary. 

Don't let your inspection period pass by without collecting estimates and quotes for necessary work. Take this opportunity to gather information that could potentially lead to new negotiations between buyer and seller. For instance, if a home inspection reveals a malfunctioning cooling system, a buyer could push for repairs or a credit towards repairs. Take control of your inspection period and create opportunities for smooth negotiations with our tips.

What Steps Should a Buyer Take During Due Diligence?

As a wise home enthusiast once said, while inspectors are hard at work examining your humble abode, you also have your own homework to do. Take a closer look at the neighborhood where your home is nestled. Check for any potential safety hazards in the area.  Research the access to top-notch schools if needed. And let's not forget about the property value – check to see if homes in the area have been appreciating in recent years. 

Discover the key to making a fair and informed offer on your dream home with a little help from your trusty real estate agent. They're the experts who have already done their research on the area, so lean on them for some guidance. But if you're second-guessing your offer, don't wait too long to speak up. After all, once you've done your due diligence, it's harder to walk away without losing some cash. Take a breath, reassess, and make that next move with confidence. Your dream home is waiting. 

If you're looking to buy a new home, there's more to consider than just finding the perfect property. Financing the purchase can be a big challenge, which is why you should start researching mortgage companies early on. You'll also need to schedule an appraisal, which can impact the sale price. Don't overlook these crucial steps on your way to becoming a homeowner.

Purchasing a home can be nerve-wracking, but it doesn't have to be! Taking the time to do your research is crucial for ensuring you're making the right purchase. Don't let anything slip through the cracks – use this time wisely and be sure to voice any concerns or doubts. Remember that this purchase is a long-term commitment, so make sure you're confident in your decision not just for the next few months, but for the years to come. Start researching your home and discover stunning floor plans when you explore one of Pulte's new home communities today.

For more design tips, local attraction guides, and homeowner lifestyle articles, check out the Pulte Homes blog for inspiration.