Valley News -

By Tena Caracciolo
Special to Valley News 

When buying a home, consider 6 due diligence tips

 

Last updated 6/22/2018 at 2:36pm

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The due diligence process is the buyer's opportunity to review all facets of a potential home sale.

When purchasing property, doing the needed due diligence is more than a turn of phrase. The period when a house is under contract is an essential part of the homebuying process and requires careful attention to detail.

Be aware for the basics.

The due diligence process is the buyer's opportunity to review all facets of a potential home sale. From home inspection findings to homeowner insurance costs, it's when they will take the time to understand exactly what they're potentially buying.

Here are a few due diligence do's and don'ts to consider.

First, do find out how long it lasts. Two weeks is fairly standard for the average due diligence process; however, shorter periods may be negotiated to gain a competitive edge in a seller's market.

Don't make assumptions about when it begins. In some cases, due diligence is conducted before a property goes under contract. In others, it begins after the contract is signed.

Do consult an insurance agent. Floodplain and fire-prone areas may require additional coverage. Make sure to know the estimated costs and what a new homeowners insurance policy will cover.

Don't skim the home inspection. Make sure to be familiar with every line of the report. They buyer may want to get quotes from contractors or negotiate repair costs into the offer.

Do needed research. Review neighborhood characteristics and check the area's crime rates. Look at zoning laws to ensure they align with any long-term goals.

Don't forget to review the homeowners association documents. When joining a homeowners association, it's not enough to simply read the HOA documents. Make sure the community is in good physical condition, and the association is financially sound.

Being thorough in the due diligence phase will help a buyer uncover potential issues and make the right choices for their family.

Tena Caracciolo is a 20-plus year veteran in the insurance industry. Her goal is to reduce insurance costs, reduce gaps in coverage by reviewing a current policy exclusions, limitations and increase the level of service.

To learn more, visit http://www.caraccioloinsurance.com or call (951) 397-4010.

 

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