Make your Buyer’s Due Diligence Period Count

One of the most valuable tools smart home buyers can use is the Buyer’s Due Diligence period provided by most state REPCs to their advantage. Don’t skip the critical steps put in place for your protection. They are there to assist you in assuring your property purchase is a smart one. 

Sellers Disclosures-Read the Fine Print
Most states require that a seller honestly complete a detailed Seller Property Condition Disclosure. Sellers are obligated by law to disclose to buyers known defects in the property that can affect the value of the property and which may not or cannot be detected by an ordinary buyer. Has the home experienced a flood or water damage? Are there any easements or encroachments onto a property’s boundary? Are there any forthcoming or pending Homeowner’s Association assessments? You will have the opportunity to provide these seller disclosures to your home inspector for further evaluation and ask questions of the seller before you lock in your commitment to buy. 

Have an Inspection
Simply looking in closets or examining a roof line may not expose to you problems a property may be hiding. Spend money on hiring a professional inspector. They will identify the nitty gritty issues that may be lurking beneath the surface. If you see visible signs of water damage, consider paying extra for a mold test whose positive results could expose you to long-term hazardous health issues. It will also give you an idea of money you’ll need to pay over time for larger repairs or needed replacements. Most importantly, the inspection report will help provide a list of items you want the seller to mediate prior to closing, either via repairs or by a credit at closing.

Pay attention to Your Deadline
A standard state Real Estate Purchase Contract (REPC) provides a deadline by which a buyer must complete his due diligence. Once that deadline expires, and if a buyer has not completed his mediation with the seller on any issues which arose, it can be difficult to cancel the purchase contract and receive a refund of Earnest Money. Fortunately Utah state REPCs do not require a buyer to have approval from the seller on the reason or condition which caused him or her to cancel a purchase contract, if it is canceled within the timeframe agreed upon by the buyer and the seller. Many states do not provide that buyer comfort-some require the buyer and the seller to agree on a cancellation condition.