what is due diligence in real estate

Due diligence in real estate refers to the period of time between an accepted offer and closing, during which the buyer and seller agree to allow the buyer to inspect the property before closing the deal. The purpose of due diligence is to investigate the physical and financial condition of the property and the area it is located in, to ensure that buyers are not surprised by problems when the property is turned over, and to protect both the buyer and seller. During this time, the buyer has the opportunity to ask questions, conduct investigations, and review all aspects of the transaction before closing the deal. The due diligence period can vary depending on the location and complexity of the purchase, and is typically negotiated between the buyer and seller. Some common considerations during the due diligence period include home inspection, property survey, appraisal, title search, loan qualification and application, repair negotiation, etc. . The due diligence period is typically non-refundable, but if the buyer terminates the contract during this period, the earnest money deposit is refundable.