Performing Due Diligence Before Buying a Home

Performing due diligence can be intimidating and stressful, especially for first-time buyers or investors. If you’re a home investor seeking guidance on how to perform due diligence, here are some pertinent tips:

Know the Area

Before agreeing to a deal, drive around the neighborhood and get a feel for it. Speak to the residents about unique characteristics of the neighborhood, such as the crime rate or if the home valuations in the neighborhood are either falling or rising. 

Carry Out Multiple Inspections

Performing due diligence before buying a home means ascertaining the home’s condition. Multiple inspections that cover all parts of the home, including its structures, roofing, energy, and plumbing systems should be done before proceeding. Also, check for signs of insect-driven wood rot, radioactive emissions, lead-based paint, and defective Chinese drywalls (they emit sulfurous toxins).

Get Insurance

Before buying a home, you want to ensure that it meets the minimum standards for insurance. You should also decide on the right type of insurance for your new home. If you plan on living in your new home, then opt for a homeowner’s insurance package. Alternatively, suppose the home is to be rented out to tenants, a dweller’s insurance is the right fit for you since it covers liability. If you only plan to buy a home to “flip” it later, opt for empty or vacant insurance.

Owner’s Title Insurance

A legal document asserting that the property is free and clear of any flaws in ownership, liens, or title claims is known as an owner’s title. Southern Title helps homebuyers in the owner’s title insurance process to protect them from undiscovered title difficulties in the future.

In conclusion, ensure that all proper legal checks are done before agreeing to any deal for a home.