In real estate, due diligence is the period of time after your offer is accepted (but before closing) where you, the buyer, have the chance to fully investigate the property and make sure it’s the right fit.

Think of it as a “check everything before you’re locked in” window.

During this period, buyers typically:

• Home Inspection: Hire a licensed inspector to check the property’s condition (roof, plumbing, electrical, HVAC, etc.).

• Appraisal: Lender requires a professional estimate of the home’s value to ensure it matches the purchase price.

• Title Search: Verify that the seller has clear ownership, and there are no liens or disputes.

• Review HOA Rules: If the home is in an HOA, check fees, rules, and restrictions.

• Insurance Check: Get quotes for homeowners insurance and check risks (flood zones, wildfire zones, etc.).

• Neighborhood/Local Research: Schools, commute, traffic, noise, crime, future development.

• In some states (like North Carolina), buyers pay a due diligence fee to the seller — essentially “paying for the time” the home is off the market while they investigate.

• More commonly, buyers put down earnest money (good faith deposit), which shows they’re serious. If you cancel for valid reasons found in due diligence, you may get it back.

• Protects the buyer from surprises (hidden repairs, title problems, etc.).

• Gives an exit option — if something major comes up, you can often renegotiate or walk away.

• Ensures informed decisions before committing to a major financial investment.

👉 In short: Due diligence = your “safety net” time to make sure the home is sound, the title is clear, and the deal truly makes sense before you close.

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House Keys is produced by Birdman Media™

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