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Step 5: Due Diligence

If the seller reaches an agreement with you after the offer phase, then you need to perform in order to fulfill your part of the contract. Specific protections will be put into the agreement to help keep you from the unknowns. Most important is the right to have a property inspection.

We will always recommend you get an inspection. There are home inspection companies that do nothing except inspect homes as part of purchase agreements. These people do this every day; they are an incredible wealth of knowledge about the workings of any structure. They go through the house and review any potential issues. We cannot urge you strongly enough that you personally should attend this inspection.

The company representative will review all areas of the functionality and safety of the house. Some of the comments will be very minor in nature, but he or she will point out everything they can uncover during a several hour time-frame. Structural concerns, as well as any significant systems that run the house are most critical. They will review and inspect:

o The heating, ventilation, and air conditioning (hvac) system(s)
o Plumbing and drainage throughout the house
o The electrical system starting at the main panel and analysis of GFI (ground fault interrupters) in the appropriate places
o Potential areas of water damage from plumbing and/or storm runoff
o Overall structural integrity, both inside and outside

If the property is inspected and something major is discovered to be a problem with the house, this gives you the opportunity to go back to the seller and ask for something to be corrected. Or possibly, if very severe, to cancel the contract to purchase the place. This is one of the protections we will make sure you have upon making the offer.

The cost to conduct this inspection will usually range between $300-$500 and is paid for by you. It provides tremendous protection for you. We will recommend using this tool in 100% of our buyer representations. However, if nothing significantly bad comes out of the inspection process, then you will need to get your funding in place.

There will probably need to be an appraisal of the property done by a licensed appraiser in the state of Pennsylvania in order to support your loan. There will be other paperwork required to support your loan document as well. The financial institution representative will coordinate those items. We will help answer any questions you have during and throughout that process. But quite often you will need to talk to the loan rep to get the specific answers to any concerns you may have about the loan.

Another part of a real estate purchase involves insuring your new asset. You will need to purchase a homeowner’s insurance policy that protects against any loss/damage to the property. Your loan officer will require this policy to be in effect in order to close on the transaction and provide you the funds to purchase.

Win Win will be there to help you understand your responsibilities so that when the closing date arrives you are completely relaxed and excited about signing the documents. As opposed to stressing over all that goes into a real estate purchase.

STEP 1: Buy vs. Rent

STEP 2: Price Point

STEP 3: The Search

STEP 4: The Offer

STEP 5: Due Diligence

STEP 6: The Closing

 Download full guide here
 



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