The Buyer’s Due Diligence or Inspection Period

When you, as a buyer agree on the terms with a seller, and those terms are signed on a Purchase and Sale Agreement the property goes under contract. This moment is called the “effective date” and typically begins a specific period of time where the buyer, working with their agent, can do all the background work and information gathering to make sure they understand what they’re buying.

During this period, you, as the buyer usually work with your agent to identify any concerns, risks or issues with the house. You’ll also want to ensure that you can do what they plan to do with the house or property.  Expect to use this time for the general building inspection and any other inspections. You’ll have a good list on the purchase and sale agreement that includes waste disposal, water quality, code enforcement, zoning, tax status, and so on. 

Make sure to discuss your timing and list of concerns with your agent as you’re working on the terms of your offer because you’re often signing an offer or counteroffer in a hurry. It’s the buyer’s responsibility to uncover everything that would impact their use and enjoyment of the property. If you’re making an aggressive offer with a compressed due diligence period to be competitive you’ll need to know if you can get the inspections done and understand them enough to respond before to the end of due diligence. The clock is ticking to learn what you need to about the property. 

This period can be nerve wracking for the seller as well because they’re accommodating these somewhat intrusive inspections. They may also be wondering what could be discovered about the house that they haven’t already noticed.

A good agent is going to set everyone’s expectations early to help this process go as smoothly as possible. Scheduling quality inspectors and uncovering any concerns at a fast pace is critical to avoiding surprises during the transaction.