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Your First Home: Step 6-Perform Due Diligence

So by now, you have found your house and have reached an initial agreement with the seller. To close the deal though, you must remove contingencies. But how do you feel comfortable enough to remove them? You do due diligence. If you discover a reason you should not be purchasing this house in doing due diligence, you are saving yourself a lot of heartache and money and removing yourself from the transaction while you are still able to.

One of your first major inquiries will be for: homeowners insurance and property inspections. While this may cause another round of negotiations-these steps are to protect you the buyer. In regards to your home owners insurance policy, here are some things to think about:

1.      How much coverage do you need?

2.      Replacement cost or actual cash value?

3.      What the named and unnamed perils?

4.      Do you need personal property insurance?

5.      What are your additional living expenses?

Once insurance has been picked, proof of insurance is sent to your lender and arrange for you to prepay a year’s worth of premium as part of your closing costs. Next let’s talk to a property inspector. While looking for your guy, review the seller’s disclosure - a written statement of the owner’s knowledge of the property’s current condition. Back to the inspector, here’s some things to ask him:

1.      Are you licensed, or a member of a professional inspectors organization?

2.      What is your professional background?

3.      What kind of ongoing training do you receive?

4.      Do you have errors and omission insurance?

5.      Can I see a sample inspection report?

6.      Do you specialize in a certain kind of construction?

7.      What does it cost?

8.      How soon are you available?

You have picked your person and the inspection has been set up-if possible attend your inspection. Once the report is ready, it is emailed to you. It is very important to read it first. Remember no home is perfect, but when asking for repairs-keep them health and safety related. Once you and the seller have come to agreement about what repairs are to be done or compensation-we move on survey, title work, and appraisal.

This ride is almost over, but it isn’t over yet. Join us next week as we get ready to close the deal!

Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
Reference: Your First Home by Gary Keller
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Location: Orange, CA, USA

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