Real Estate Acquisition Due Diligence Checklist

Performing due diligence on local purchasing laws, buyer agents, mortgage rates and the structural integrity of your home equity will ensure that you have as much information as possible to make the best financial decision for you and your family.

Local research laws

Each state and municipality has different processes and documents that must be executed by the purchase of real estate to be completed, and some areas even require you to apply for the services of a residential real estate lawyer. They must learn these requirements in advance so as not to receive an unpleasant surprise or costs not foreseen later.

Real Estate Agent Interview

It is important to know that your real estate agent is working some jobs just for buyers, while others work simultaneously for the buyer and seller. This can create a conflict of interest, where the agent may be more interested in facilitating the transaction than in getting the best ones. Other factors to consider include the scope of the properties that the agent has access to and the commission rate for each agent.

Check comparable sales data

Once you have found properties that interest you, the price paid for comparable houses in the research area. Your buyer’s agent should be able to help with this. Investigating comparable sales data helps you learn about market values ​​in the area and whether property values ​​have been increasing or decreasing, and can provide leverage when negotiating a purchase price with the seller.

Shop for mortgage rates

As you begin your home search, apply for mortgage rates from various lenders. For an accurate comparison make sure that the type of loan, loan amount, blocking period and quote time are identical for each potential lender.

Have you inspected your home?

They always have their home inspected by a professional housing inspector once they have agreed in principle to a purchase contract. An inspection ensures that you have knowledge about problems that may not be evident on the surface before you are committed to the purchase. A home inspector looks for problems in the foundation of the house, roof, walls, plumbing, electrical and heating systems. If it detects any significant problem any one can ask the seller to solve the problem before executing the contract or he can try to negotiate a lower price to compensate for the cost of the repairs.