วันพุธที่ 22 พฤศจิกายน พ.ศ. 2560

Buying a House - Doing the Due Diligence

When a buyer and a seller agree to a contract to purchase real estate, there is often an inspection period. In Georgia, this period is called the Due Diligence period. This is the period for the buyer to do all of their inspections and fact finding.

In Georgia, this due diligence period is often 10 to 14 days and encompasses everything. It has sometimes been referred to as the "Free Look" period because a buyer can terminate the contract for any reason during this time. They can have their uncle look at the property or stub their toe or even find another property and terminate the contract and receive their earnest money back.

During the due diligence period it's often expected that the buyer will perform a home inspection. Georgia does not regulate the businesses of home inspectors so it is generally suggested that the buyer get an inspector that is ASHI certified. The American Society of Home Inspectors have a set of standards and guidelines that every member must adhere to. It's not a foolproof way to pick an inspector but it does help.

Other inspections that are common or should be during the due diligence period are termite inspections. A good pest control company will perform a free termite inspection and only charge if a "termite ขายบ้าน closing letter" was requested. Often pest control companies will look for other pests if you simply ask them. It can save thousands of dollars to have a professional take a look at potential entry points for pest. HVAC inspections, pool inspections and other system inspections are sometimes requested.

Additionally, the due diligence period is the time that the buyer needs to find out about offenders in the area, as well as potential land value issues such as landfills. Finally, the appraiser can be ordered in the period but is not always.

The Due Diligence period was originally an inspection period with strict rules on what a buyer could do and could not. This relatively new period now also includes the ability to request anything of the seller on the property. The only caveat is that all negotiations have to happen within this period.

As you can see this protects the buyer far more than the seller in this instance. On the seller side this period ends up being good because at the end of it, the buyer is often locked into the home for good. If the buyer backs out after this period they could face losing their earnest money or legal actions.


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