Due diligence is an important part of buying property. It can help ensure that you’re getting a safe home that’s worth what you’re offering. It could also help you avoid costly mistakes, including those that may have legal repercussions down the line.
Are you preparing to buy a new home or invest in a property for your portfolio? Here’s a refresher on some important due diligence steps to take after you make an offer.
- Appraisal: An appraisal determines the current market value of a property according to an unbiased professional. It ensures you’re not paying too much for a home, and you won’t be able to get a mortgage without one.
- Survey: Land surveys determine the physical boundaries of a property. They can help you steer clear of boundary disputes with neighbors and establish the legal bounds of your investment.
- Title Search: A title search involves looking for any liens or claims against a property you intend to buy. If they aren’t found and settled before purchasing, you could owe someone else’s debts just by buying the home. (In some cases, the creditor could even claim the house.)
- Inspection: Home inspections are physical evaluations of a property’s structure and systems. Inspectors can identify necessary repairs and costly (or hazardous) issues that may be lurking below the surface — like mold, pest infestations and foundation problems.
- Disclosures: The seller and their real estate agent should provide disclosures, detailing any known issues in the home or other things that could impact your decision to buy the property.
Reach out if you have questions or if you’re ready to invest in a new property.
