As a home buyer it goes without saying that you must do your due diligence thoroughly during the contract period. It’s just one thing in a long list of things you need to know about how to buy a home.
And you might ask “what’s the big deal?”
Well, thorough due diligence is essential so you will know as much as possible about the property you are buying before you make the final decision about proceeding with the purchase within the defined time frame in the contract, or not. There are certain contingencies in the contract that must be removed by a particular time (e.g., home inspection) and these depend on thorough investigation.
Our California Residential Purchase Agreement (RPA) defines the time period, often also called the contingency period, during which you have some pretty specific and important tasks to carry out before you remove the contingencies. These tasks include, but are not limited to, the following:
Termite Inspection (and of course a Section 1 clearance)
Other Inspections such as roof, pool/spa, HVAC, fireplace and chimney, plumbing, or electrical
A review of all Seller Disclosures
The Natural Hazards Disclosure Report (a.k.a. NHD)
Reviewing all HOA Documents
Review of the Preliminary Title Report
Checking on the home owner’s insurance for the property
Are there other things to consider? You bet! Buyers usually have a long list of questions when buying a home based on personal needs and wants, as well as, perhaps, a lack of familiarity with the area. These may include the following:
Neighborhood ~ Schools ~ Crime and safety ~ Local Traffic
Is the home in a noisy area due to traffic, train, major roads, airport?
What’s it like living in the community if there is an HOA?
Where do I find the shopping, dining, services and other amenities?
No doubt you will have some other things you will wonder about. The important thing to keep in mind is that whatever concerns or questions you have should be investigated thoroughly during the contingency period. It’s a lot of work in a relatively short period of time, but well worth your time and energy so you won’t regret your decision. After you own the house it’s too late!
If I can answer any questions about the due diligence process or help you in any way, please don’t hesitate to get in touch.