Your home is your sanctuary. As such, it goes without saying that you want the best possible experience when purchasing one.
Whether you are buying a family or a vacation home, it is important that you take appropriate steps to ensure that you get value for your money. And this is where the concept of due diligence during home purchase comes in.
What is due diligence?
In the context of home buying, due diligence refers to the buyer’s effort to investigate the various components of the home either before expressing interest or closing the home purchase process. The purpose of due diligence is to help the buyer identify any defects or title issues that might cause problems down the road.
While a number of things should happen during the home purchase process, here are the most important ones:
Learn about the neighborhood
Before you can even make an offer, you need to check out the neighborhood to have an idea of what it feels like to live in the community. Do they have a homeowners’ association? Are property values in the area on an upward trend? What about crime rates? It is important that you learn as much as you possibly can about the neighborhood you wish to move into.
Get the home inspected
You want to invest your hard-earned money in a structurally sound property. For this reason, it is important that you bring in professionals to perform the following inspections on the home:
- A general home inspection to ascertain the home’s overall condition
- Inspection for water, mold and termite damage
- Chemical inspection that checks the presence of harmful substances like lead and asbestos in the home
While minor issues can be fixed, a home inspection report that reveals significant defects in the home may prompt you to walk away.
Safeguarding your investment
Whether it is your first or your fourth, a home purchase is a huge investment – both financially and emotionally. Performing due diligence before and during the home purchase can help you avoid costly mistakes that can ruin your homeownership dream.