Step in Do Due? – Why Due Diligence Matters Before Closing on Real Estate by Seay Development Real Estate Brokerage
Due diligence is a way of preventing unnecessary harm to either party involved in a transaction. How simple of a definition is that? Love it. It seems so easy, but how do you due? Real estate is an amazing asset, but let’s not fool ourselves that it is the least liquid of investment or ownership vehicles. You can’t call up the NASDAQ and unload on a moment’s notice so you BEST know what you are buying. I am blown away by the simplistic level of due diligence that buyers accept. Listen, the BBW! Buyer Be WARE! That’s right, a buyer better know what they are getting into. Legal counsel, CPAs, engineers… all the right trades need to be employed in the due diligence phase of a property acquisition. It just makes good sense and if you don’t have a detailed plan to inspect a property, your risk factor will certainly go up. While not all risks and conditions to a property can be uncovered during the due diligence or “inspection period”, you must have a plan of attack. Good brokers know this and employ the concept day in and day out. No plan? Oopsy. Call me to learn more about my plan and detailed due diligence methods when I represent buyers of both commercial and residential properties.