A Look at the Due Diligence Period

After you’ve made an offer on the home, the deal isn’t finalized yet. The next big hurdle is getting through the due diligence period.

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If you’re buying or selling a home, there will be a period of time after the offer is accepted but before the deal is finalized called the “due diligence period.”

The due diligence period is a length of time in which you can complete your home inspection, home appraisal, and any other surveys or appraisals that are needed before the sale closes. Basically, it’s a time to take a real close look at the home and make sure its condition is up to par.

If an inspection report comes back with a lot of surprises and the seller isn’t willing to negotiate repairs, you can back out of the contract at any point for any reason during this time period. After the due diligence period is over, that earnest money isn’t refundable.

The due diligence period gives you the ability to back out at any time.

In certain cases, you will have to pay a due diligence fee. It’s another non-refundable fee, but it will count toward your deposit if the deal does close so if you’re sure about a home, there is little risk involved. The due diligence period can last anywhere from one to three weeks.

If you have any questions about the due diligence period or anything else relating to real estate, give me a call or send me an email. I would love to hear from you.