What Happens During Due Diligence? A Homebuyer’s Essential Checklist

Once your offer on a home is accepted, you enter the due diligence period—a crucial window where you get to look deeper before fully committing to the purchase. Think of it as your opportunity to make sure the home is a good fit and there are no surprises lurking beneath the surface. Here’s what typically happens during due diligence for buyers.

1. Home Inspection and Repairs

This is your chance to hire a professional inspector to check out the property’s condition. The inspector will look for issues big and small, from roof leaks to faulty wiring. If any problems pop up, you can negotiate repairs or credits with the seller, or even walk away if the issues are too serious.

2. Reviewing Disclosures and Documents

During this period, you’ll receive disclosures from the seller about the home’s condition and history. Read these carefully! You’ll also review important documents like the title report, property survey, and community association rules if applicable.

3. Appraisal and Financing

Your lender will typically order an appraisal to ensure the home’s value matches the purchase price. If the appraisal comes in low, you may need to renegotiate or bring extra funds to the table. This is also when you’ll finalize your mortgage details.

4. Checking Permits and Zoning

It’s wise to verify that any renovations or additions were done with proper permits and follow local zoning laws. Unpermitted work can cause headaches down the line, so don’t be afraid to ask questions or request documentation.

5. Insurance and Other Research

Shop for homeowners insurance and check if the property is in a flood zone or has any special requirements. You might also want to research the neighborhood, local schools, and commute times to make sure the location fits your lifestyle.

6. Final Walk-Through

Just before closing, you’ll do a final walk-through to make sure the home’s condition hasn’t changed and any agreed-upon repairs are complete. This is your last chance to flag issues before you sign on the dotted line.

Due diligence is about protecting yourself and making a confident, informed decision. Ask plenty of questions, lean on your real estate agent for guidance, and take your time. With a thorough approach, you’ll be ready to move forward with peace of mind!