When buying a real estate property, there are always risks involved and as such, it pays to plan well and do your research. Many experts normally advice buyers and investors to do their due diligence regardless of the type of property they want to purchase. Unfortunately, not everyone follows this advice resulting in disappointments and loss of money.
So what really is due diligence and what actions are involved in this process?
Due diligence simply refers to doing your homework before buying or selling a property. It involves taking caution, doing research about the market condition and prices of comparable homes in one’s preferred area, reviewing documents, purchasing insurance and inspecting the property. It is only by doing these steps that one can make a guided decision and avoid the risks.
Shop for Your Preferred Properties
If you and your partner have decided to buy a home, the first step you need to take is shop the marketplace. This should not be rushed to enable you to look at the best properties possible in your preferred location. Visit as many properties as possible before putting an offer.
Compare Prices of Recently Bought Homes
It is also a good idea to compare the prices of homes that recently sold in the area you want to buy. This way, you know how much to offer in your purchase agreement and not go over your budget.
Apply for Financing
When applying for financing, do ensure that you also check several lenders first. This step will help you get the best mortgage deal that offers the most affordable repayment scheme for you.
Review Necessary Documents
Real estate transactions always involve many paperwork and you need to be responsible for reviewing them. This is regardless you have a real estate agent or buyer’s advocate assisting you in buying a home.
Obtain Insurance
Find out if an insurance policy can be written for the property and if it’s possible, ask about its cost. Areas that are prone to floods or fire may not issue such policy.
Get a Property Inspection Report
Ask the owner of the house you want to purchase about a property inspection. If this is still being scheduled, make sure that you are present during the inspection to find out the remarks of the inspector. Once you have obtained a property inspection report, you can then consult with a contractor to determine the cost of repairs you may want to make after buying the house.
Keep in mind that due diligence is very important because it will allow you to decide properly on the property you are buying. For example, if after inspection you found out that the house does not meet your needs, you can still terminate the contract without penalty involved and without losing your deposit.
Looking to buy in Melbourne and sick of missing out at auction? Talk to me about how I can help you buy your new home faster, for less.
Give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
By Wendy Chamberlain
Copyright 2018 | All Rights Reserved
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With a passion for all things real estate spanning 18 years, Wendy loves that her role as a Buyers Advocate gives her buyers an experienced voice they can trust when it comes to negotiating to purchase something as important as their new home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.FollowWendy.com for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.
