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The Due diligence Period is your opportunity to make sure you are confident with the home you’re buying.
The steps taken during Due Diligence will help you discover any hidden defects or conditions about the property that may not have been fully disclosed.
Inspection
Though not required, a home inspection by a qualified company is highly recommended.
A home inspector looks at all the parts of your home you may have missed during your initial visit. They will inspect for mechanical, structural and safety issues and present you with a report on the overall property condition.
Without a home inspection, you may encounter some costly, unexpected repairs after closing.
Seller Disclosures
Disclosure statements reveal known defects (both present and past) to potential buyers. This is a chance to learn more about the house you’re buying. Disclosures also protect sellers from potential legal action.
Disclosures can include things like work that was done without a permit, or that wasn’t completed according to building codes, termite problems, water damage, or malfunctions with major systems.
You should receive a Seller’s disclosure prior to presenting an offer. Your home inspection along with the seller’s disclosure should reveal any conditions you may want the Seller to address before closing.
Appraisal
An appraisal is something the lender will order for you.
An appraiser gives an unbiased view of the property value. He or she will assess if the amount you offered to pay is supported in the market based on both the home’s condition and recent comparable home sales in the area. This is to protect the lender and you.
It’s good for all Parties to make sure the appraisal can support the contract price.
