After your offer for a home in Arlington has been accepted, there’s a process that lasts for a few weeks before you finally close the transaction. This is the time when buyers are often advised to “do their due diligence” on the home they soon hoped to own.
But, what does “due diligence” mean anyway? In legal terms, this simply means “do your homework” before buying a property.
Before committing yourself to a property, you should investigate fully any major problems that could cost you a huge amount of money to fix once you moved in, and decide if you still want to buy the property.
What happens if you find problems during the due diligence process?
Every real estate property has problems- even the brand-new ones- depending on how picky you want to be. Home inspectors usually lists down a what they have found, many of which are cosmetic, easy to fix, or a result of wear and tear on the property. The seller of the property is not required to fix every problem the inspector or the buyer finds.
If during the due diligence, you discover that the home in Arlington has defects that should be fixed, you can negotiate with the seller who may agree to either fix the defects or lower the home price.
If the seller does not comply, the law gives you the legal right to walk away from the deal. And, if you’ve placed some contingencies in your purchase agreement and you withdraw your offer within the time period specified in your contingency addendums, you will not have to forfeit your deposit.
The things to consider while doing your due diligence include:
- A home Inspection- The home inspector will look for a crumbling foundation, faulty HVAC systems, termites, leaking roof, and other potential big-money problems. You can also hire another professional to test for biotoxins which include mold, radon, and asbestos. Also, check for neighborhood issues that could affect your home.
- Title Search- This is to ensure that you can establish legal ownership to the property in Arlington without any problems.
- Condo or HAO Rules- This is if you are considering investing in a condo or property within a homeowners associations.