Real Estate Wise
  • Real Estate Wise
  • About Us
  • Sellers
    • How do we help you make the wise move in selling your home?
    • PULL HERE TO SELL!
  • Buyers
    • How we help our buyers find their perfect home.
    • Search for your home
  • Make the Wise Move
  • Client Reviews
    • Places to review me

What the due diligence contingency is, and why it is SO important in this market.

4/27/2013

2 Comments

 
Picture
What is a Due Diligence Contingency?
When going into a contract, there are several protections for the buyer.  This post will be covering the due diligence contingency.  IN other words, the deal is contingent on the buyer doing their due diligence.  Due diligence is defined:  Reasonable steps taken by a person in order to satisfy a legal requirement, esp. in buying or selling something.  

The due diligence contingency is active for a specified length of time.  This time is negotiable and can be any length that the parties agree on.  The seller will want this as short as possible and the buyer will want this as long as possible.  This length of time is called the due diligence period.

The easiest way to describe the due diligence period is a period of time that the buyer can terminate the contract for any reason.  This is the time that you will get your inspection completed, get any additional information about the HOA you need to know, and, well, do your due diligence.  In other words, discover any and all information that would cause or preclude you from buying the home.

The most common reason that someone terminates a contract during due diligence is that the inspection uncovers an issue that the seller is not willing to fix.  However, as mentioned above, the buyer can terminate the contract for any reason.  If at any point during the due diligence, the buyer changes their mind, they get their earnest money returned.

Don't hesitate to make an offer!

As many buyers, especially those purchasing below $150,000.00 realize, there is a lot of competition in the market right now.  There aren't enough homes being listed and those that are are getting put under contract within days, if not hours.  If you want to sleep on it, you won't have the opportunity to purchase it when you wake up in many cases.

So, right now, it is imperative that you put in an offer as quickly as possible, and use the due diligence period to fully investigate it and ensure you want to go forward.  

Word of caution:
Some REO companies do not allow for due diligence, they have an inspection period.  These are a bit more restrictive in the reasons you can terminate the contract.  However, these companies move slowly in responding.  You won't have signed contracts for a few days.  Until the contract is signed, it is not binding and you can terminate. 

Final word:
No one wants to rush the decision to purchase a home.  It is a huge purchase and you want to be sure that this is the home for you.  That said, you absolutely cannot handle these decisions the way we have traditionally handled them.  You can't 'think about it'.  You have to act.  Be decisive and know you have protections if you discover something that makes the house not work for you.

Oh, and of course, make sure you have an agent that knows how to protect you, and someone that can explain all the contingencies.


Happy Hunting and good luck!

2 Comments
mortgage investor link
6/24/2013 12:42:27 am

I think it's a huge impact state economy. The more people have a job that is more likely to buy a house.

Reply
mic mortgage link
11/22/2013 12:07:49 am

So you can get a better selling real estate

Reply



Leave a Reply.

    RSS Feed

    David and Amanda Blanton

    Make the Wise Move!

    Categories

    All
    Alpharetta
    Appraisal
    Assessment
    Avoid Foreclosure
    Braselton
    Buford Ga
    Buyer Tips
    Choosing A Real Estate Agent
    Cumming
    Dacula
    Duluth
    Financing
    Flowery Branch
    Foreclosure
    For Sale
    Ga
    Grayson
    Gwinnett County
    Hoschton
    Jackson
    John Maxwell
    Johns Creek
    Keller Williams
    Lawrenceville
    Lender
    Listing
    Loan Modification
    Loganville
    Mall Of Geogia
    MI
    Mortgage
    Mortgage Insurance
    Nocross
    Peachtree Corners
    PMI
    Private Mortgage Insurance
    Property Tax Assessment
    Property Taxes
    Real Estate
    Real Estate Agent
    Real Estate Market
    Restaurant
    Review
    Seller Tips
    Shopping For Mortgage
    Short Sale
    Snellville
    Sugar Hill
    Suwanee

    Testimonials
    557886
    ' David is awesome to work with. He knows the area very well. He is extremely responsive, always took my calls and answered my emails and txts. He truly ... more '
    5.0/5.0
    by philipkupersavage
    557657
    ' David was extremely helpful.....We were very picky buyers & he never pressured us to look at a house outside of our parameters or place an offer... he ... more '
    5.0/5.0
    by dwcourter
    309784
    ' Mr. Blanton helped us find the home of our dreams and he did by listening to what we wanted. He taught us about the housing market, guided us in the ... more '
    5.0/5.0
    by user30821228
    Zillow
    David C. Blanton - Agent at Keller Williams Realty

    Archives

    May 2016
    February 2016
    June 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    November 2013
    September 2013
    August 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    July 2012

    Categories

    All
    Alpharetta
    Appraisal
    Assessment
    Avoid Foreclosure
    Braselton
    Buford Ga
    Buyer Tips
    Choosing A Real Estate Agent
    Cumming
    Dacula
    Duluth
    Financing
    Flowery Branch
    Foreclosure
    For Sale
    Ga
    Grayson
    Gwinnett County
    Hoschton
    Jackson
    John Maxwell
    Johns Creek
    Keller Williams
    Lawrenceville
    Lender
    Listing
    Loan Modification
    Loganville
    Mall Of Geogia
    MI
    Mortgage
    Mortgage Insurance
    Nocross
    Peachtree Corners
    PMI
    Private Mortgage Insurance
    Property Tax Assessment
    Property Taxes
    Real Estate
    Real Estate Agent
    Real Estate Market
    Restaurant
    Review
    Seller Tips
    Shopping For Mortgage
    Short Sale
    Snellville
    Sugar Hill
    Suwanee

    RSS Feed

Powered by Create your own unique website with customizable templates.